- West Texas Intermediate erased overnight losses and traded above $70/Bbl Thursday morning
- Oil prices fell yesterday following mixed oil inventory data reported by the EIA
- The EIA reported over a 5 MMBbl draw in U.S. crude inventories on Wednesday, but petroleum products had outsized builds – offsetting the positive crude oil decline
- OPEC on Thursday left its forecast for oil demand growth this year unchanged
- In its monthly report, OPEC said it expects demand to grow by 6 MMBbl/d
- For supply, the group said it raised its 2021 estimate of non-OPEC liquids by 100 MBbl/d. The upward revision now pegs non-OPEC supply to grow 0.8 MMBbl/d this year
- The report cited “faster-than-expected recovery in U.S. liquids production of 2.5 MMBbl/d in March,” for the revision
- International buyers of U.S. crude are starting to shy away from Permian oil as the WTI-Brent spread narrows, according to market participants talking with Bloomberg
- On Tuesday, WTI settled at $2.35/Bbl below Brent, the smallest spread since November
- Crudes such as Abu Dhabi’s Murban are starting to look better as an alternative, Bloomberg reports
- WTI Midland prompt cargoes from sellers are being offered at 85c-80c/Bbl under ICE Brent, FOB Houston, versus $1.35-$1.25/Bbl below last week