- Oil plunges to a three-week low amid lingering demand concerns
- June ’23 WTI lost 58c this morning to trade around $76.49/Bbl
- Concerns about the outlook of demand seem to be the bearish driver despite a tight supply
- First Republic Bank's 1Q23 earnings showed that the bank lost over $72 billion in deposits amid the wider banking crisis in the US and Europe
- However, the U.S. dollar weakened relative to its recent highs, making dollar-denominated commodities less expensive for buyers holding other currencies
- The market awaits China's Golden Week holiday in early May to see if it signals a strong economic recovery
- Asia breaches G7’s $60/Bbl price cap on Russian crude oil in 1Q2023 (BBG)
- Many Asian countries continued to buy Russian crude oil at prices above the G7 price cap of $60/Bbl during the first quarter of 2023
- The average price of exported Russian crude oil was $73.70/Bbl for the four weeks following the implementation of the price cap in December
- The cost of shipping likely increased the price of Russian crude oil, as Russian crude oil at the point of import cost an average of $18/Bbl more than at the point of export in March
- Nigerian oil industry disrupted by strikes (BBG)
- Four crude oil tankers carrying 3.8 MMBbl of crude have been waiting to offload crude for 12 days off Nigeria's coast, with 1.9 MMBbl more expected by week's end
- Exxon Mobil has declared a force majeure on all loadings due to strikes
- The strikes are part of a wider labor dispute and are expected to have a significant impact on Nigeria’s oil production and exports