IGI Logo

WTI Crude oil prices hit a 4-month high last weak after the IEA warned a tighter supply picture for 2023 amid additional supply cuts from OPEC+.

Global Economy

• Most global equity gauges were on positive territory last week.

• Fed Governor Christopher Waller said last week that the U.S. central bankers need to move interest rates further higher, while Atlanta Fed President Raphael Bostic said one more 25 basis point hike can allow the Fed to end its tightening cycle.

• India and Russia are discussing a free trade agreement in a move that would further deepen bilateral commercial ties.

• China's trade surplus widened to USD 88.19 billion in March 2023 from USD 44.35 billion in the same period a year earlier. Exports jumped unexpectedly by 14.8% yoy, while imports dropped less-than-anticipated by 1.4% amid weakening domestic demand.

Currencies

• The dollar index settled last week at 101.55 shedding 0.50 percent.

• Euro gained 0.95 percent against dollar, Japanese Yen gained 1.20 percent while Chinese yuan steadied against USD last week.

• Indian Rupee moderated against USD and settled at 81.82 last week

Energy

• Crude oil benchmarks, WTI and Brent, fell more than 2.00 percent and 1.00 percent respectively last week.

• The IEA has again raised its forecast for oil and condensate production in Russia for 2023 - by 210 thousand barrels per day.

• China's crude oil imports in March surged 22.5% yoy to the highest since June 2020, as refiners stepped up runs to capture fuel export demand and in anticipation of a domestic economic recovery.

WTI Crude oil rallied to near 4-month high Crude oil prices rallied last week after the International Energy Agency (IEA) warned a tighter supply picture this year. According to a monthly assessment on the oil market released by the IEA on Friday, global oil consumption will increase by 2 million barrels per day in 2023 to reach a new high of 101.9 million barrels per day. According to the IEA, additional cutbacks by OPEC and its allies will reduce the global oil supply by 400,000 barrels per day by the end of 2023.

Even though industrial activity is slowing in the world's largest economies and production growth outside of the alliance appears robust, the unexpected supply cuts announced by OPEC and its partners on April 2 run the risk of escalating the anticipated oil supply deficit in the second half of 2023 and driving up oil prices at a time of increased economic uncertainty. In addition, figures released on Friday by Houston-based oilfield services company Baker Hughes showed a weekly decline of two and seven in the number of active oil drilling rigs in the United States and Canada, respectively.

The IEA raised the forecast for daily oil production in Russia for 2023 by 210 thousand barrels

The International Energy Agency (IEA) has again raised its forecast for oil and condensate production in Russia for 2023 - by 210 thousand barrels per day, now it expects a decrease in oil production by 530 thousand barrels per day instead of the previously forecasted 740 thousand barrels. Continued strong supply volumes underlie our forecast for Russian production for this year, revised upwards by 210,000 bpd. We now expect average oil production in 2023 to be 10.6 million barrels per day, which is 530 thousand barrels per day less than last year. Last month, agency experts expected that the production of liquid hydrocarbons in Russia in 2023 would be reduced by 740,000 barrels, to 10.4 million barrels per day.

U.S. crude output to rise in 2023 - EIA U.S. crude production and demand will rise in 2023 as Chinese travel drives consumption, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO). The crude production will rise by 590,000 barrels per day to 12.44 bpd in 2023 and by another 190,000 bpd to 12.63 million bpd next year

Money managers increased net Longs in NYMEX WTI Crude F&O Money managers increased their net long positions in U.S. WTI crude futures and options contracts in NYMEX platform the week ended April 14, the U.S. Commodity Futures Trading Commission (CFTC) reported

U.S. Crude stock levels up, Distillate and Gasoline fell U.S. crude stocks increased by 0.597 million barrels in the week ended April 07, the EIA data showed. Distillate stocks fell by 0.606 million barrels while gasoline fell by 0.331 million barrels. U.S. crude oil imports averaged 6.2 million barrels per day last week, decreased by 951,000 barrels per day from the previous week. Refineries operated at 89.3 percent of their operable capacity in the week ended April 07.

To Read Complete Report & Disclaimer Click Here

For More Geojit Financial Services Ltd Disclaimer https://www.geojit.com/disclaimer 

SEBI Registration Number: INH200000345

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime