- Oil is trading lower, around $85, extending losses from yesterday
- Last night, Israel announced there will be a response to the recent Iranian attack, which may support the geopolitical risk premium in crude prices
- Congress votes to sanction Chinese purchases of Iranian crude (BBG)
- The House of Representatives passed legislation on Monday to counter Chinese purchases of crude from Iran in response to Iran’s attack on Israel
- The bill expands sanctions against Iran to cover all transactions between sanctioned Iranian banks and Chinese financial institutions
- About 80% of Iranian crude exports are shipped to independent refineries in China or about 1.5 MMBbl/d
- Chinese refinery demand at five-month high on demand rebound (BBG)
- China’s refinery throughput has climbed to the highest level in five months as refiners rebuild fuel stockpiles following the Lunar New Year holiday
- Chinese refining throughput typically eases between April and June as refiners conduct seasonal maintenance, but weaker diesel margins may lead to a more pronounced slowdown
- While China is the world's largest consumer of crude, demand growth from the country is expected to slow down this year compared to last year
