- Oil surges to highest since November following the U.S. March CPI print
- May ’23 WTI gained 60c this morning to trade around $82.12/Bbl
- March CPI rose 0.1% from last month, below the estimated 0.2%
- The year-over-year rise in Core CPI, which excludes food and energy prices, was 5.6%, in line with the expected increase of 5.6%
- However, Fed is expected to hike interest rates at least once more due to strong consumer prices and the labor market while monitoring banking turmoil
- Additionally, treasury yields fell while equities rose following the CPI report
- The U.S. dollar fell to its lowest in nearly two months, making oil more affordable for holders of other currencies
- Kurdish oil exports remain halted as Iraq negotiates with Turkey
- Russia's flagship Urals crude price nears $60/Bbl cap (BBG)
- Russia's Urals crude price is approaching the $60 limit, with the delivered price to India's west coast over $73/Bbl as of April 6, according to Argus data
- Argus data shows an $18/Bbl gap in Urals cargoes' shipping and delivery points, with Russia’s Baltic ports Primorsk and Novorossiysk selling at around $55/Bbl
- However, it's difficult to assess the actual price due to the emergence of shadow vessels and trading companies with unclear affiliations
- Despite surging Urals crude exports to India and China, tighter sanctions are starting to impact Russia's output, with the country pledging to cut 0.5 MMBbl/d through the end of the year