Brent - $102.00 - 4.65
WTI - $97.49 - 4.58
From ING, April 25:
Energy
Oil has been unable to escape the broader risk-off move across markets. Equities and commodities took a hit on Friday. ICE Brent settled more than 1.5% lower on the day and this weakness has continued in early morning trading in Asia today. China continues to be a key concern for the oil market. The Covid situation in China appears to be moving in the wrong direction with Beijing seeing a spike in cases over the weekend. China’s zero-covid policy means that oil demand will be taking a hit as authorities try to bring the outbreak under control. Refiners have already cut operating rates significantly due to lower demand. There are reports that state refiner, Sinopec, cut rates at two refiners in Shanghai by around 18% over the first 20 days of April. Weaker demand and growing refined product stocks could offer some relief to the tightness in global refined product markets, particularly when it comes to middle distillates. Though in order to see a meaningful increase in export supply, we would likely need to see the government issue further export quotas to refiners.
Middle distillate inventories remain tight in all regions. In NW Europe, gasoil stocks held in ARA stand at 1.44mt, down 24kt over the week, which is the lowest level seen at this stage of the year since 2008. While in Singapore, middle distillate stocks stand at 9MMbbls and have increased by a sizeable 1.41MMbbls over the last week. However, inventories still remain below the 5-year average. The tightness in middle distillates is reflected in the strength of gasoil cracks, which are sending a very clear signal to refiners to maximise their middle distillate yields.
Libya is set to restart oil production over the next few days at fields which were previously shut due to protests. Libyan oil output had fallen by about 500Mbbls/d, with both the Sharara and El Feel fields shut....
....MUCH MORE
