Recap: Both WTI and Brent traded within an extremely tight range throughout most of the session, only to rise to a new session high prior to the settlement period. May WTI rose back above the $53 mark, to settle at $53.08, up 84 cents, or 1.61%. Brent for June delivery rose 74 cents, or 1.34%, to settle at $55.98.
Oil futures rose for the fifth straight session, with the May futures closing in on its 200-day moving average, which is currently set at $53.21. Just beyond this average, is the upper trend line on the ascending channel that has been forming on a daily bar chart. For tomorrow’s session, this line is set at $53.80, making this the near term target. Support rests at $52.80, and below that at $52.30.
May RBOB finished up 1.2 cents, or 0.7%, to $1.758 a gallon, while May heating oil added 1.9 cents, or 1.2%, to $1.647 a gallon.
Fundamental News: Genscape reported that crude oil stocks held in Cushing, Oklahoma in the week ending Friday, April 7th increased by 129,875 barrels on the week and by 247,855 barrels from Tuesday, April 4th to 71,460,905 barrels.
Libya’s state owned National Oil Corp declared force majeure on loadings of Sharara crude oil from the Zawiya oil terminal on Monday. The Sharara oil field was shut down on Sunday afternoon after an unknown group blocked a pipeline linking it to the Zawiya oil terminal. The oil field had been only back in operation for slightly more than a week after being shut down in late March. Sharara’s crude oil production had been running at 213,000 b/d before being shut down. The NOC had been hoping to boost output from the field to 270,000 b/d by the end of April.
Kuwait’s oil minister said Monday that he sees “positive indications in the decline of global oil inventories and expects improvement in oil market in coming months.” He also said he expects March compliance with the OPEC and non-OPEC production agreement will be shown to be “higher than previous couple of months”.
Enterprise Product Partners announced it will build a new 571 mile pipeline to transport volumes of NGLs from the Permian basin to the company’s NGL fractionation and storage complex in Mont Belvieu, Texas. The pipeline will have a 250,000 b/d capacity with the potential to be expanded to 600,000 b/d. The project is expected to be in service by 2Q2019.
Colonial Pipeline notified customers it was allocating space for Cycle 22 distillate shipments on Line 20.
Kazakhstan’s Energy Minister, Kanat Bozumbayev, said the country will deliver on its promise to OPEC to cut its output by an average of 20,000 bpd in the first half of the year from the 1.7 million bpd it produced in November.
Iraq’s Kirkuk oil fields have halted pumping for three days, according to North Oil Company. The halt in shipments from Kirkuk in north Iraq will not impact exports via Turkey’s Ceyhan port because the terminal’s storage contains enough oil for export for several days.
IIR estimated Monday that U.S. oil refiners are expected to have 763,000 b/d of capacity off line in the week ending April 14th, increasing the available refinery capacity by 177,000 b/d from the previous week.
Early Market Call - as of 9:00 AM EDT
WTI - May $53.07, down 1 cent
RBOB - May $1.7533, down 48 points
HO - May $1.6464, down 11 points
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