- Oil trades slightly lower but holds near a five-month high
- May ’23 WTI lost 31c this morning to trade around $82.95/Bbl
- The U.S. dollar fell to its lowest in nearly two months, making oil more affordable for holders of other currencies
- Prompt WTI surged $1.73/Bbl on Wednesday, hitting 2023's highest following a slightly better-than-expected March CPI
- Energy Secretary Granholm's comments about refilling the SPR to pre-Ukraine conflict levels before year-end gave crude some support
- IEA's executive director, Fatih Birol, said on Wednesday that oil prices might surpass $85/Bbl in 2H2023 due to demand outpacing supply (BBG)
- U.S. to refill the SPR in 2023 if advantageous for taxpayers (Reuters)
- U.S. Energy Secretary Jennifer Granholm confirmed the U.S. administration's focus on refilling the SPR this year as long as it is advantageous for taxpayers
- Granholm stated that the SPR will continue selling crude oil from storage sites until the remaining 26 MMBbl mandated by Congress for 2023 are sold
- The administration's target for refilling the reserve remains at $67-$72/Bbl
- China's oil imports surge to the highest in nearly three years (BBG)
- In March, China imported 12.37 MMBbl/d of crude oil, the highest level since June 2020, representing a 16% increase from February
- Refiners in China have ramped up refinery runs in recent weeks, preparing for a rise in consumption as the country’s economy recovers
- Russian crude oil imports to China hit a record high of 1.46 MMBbl/d in March, with Urals crude at 0.59 MMBbl/d, according to Kpler
- However, the OPEC+ output cut may affect Russian flows to China. Some Chinese refiners may consider cheaper options from West Africa and Latin America