- Oil is on pace for its third decline in four weeks as China lockdowns linger
- Fuel consumption in China, the globe’s largest oil importer, is expected to drop 20% in April from a year ago (BBG)
- Shanghai has been the center of China’s latest Covid-19 clampdown, causing a drop in fuel demand is the equivalent to a decline of 1.2 MMBbl/d
- Morgan Stanley (MS) boosted its Brent price forecast for the third-and fourth quarter by $10 as the bank expects a greater supply deficit
- The bank raised its 3Q estimate to $130/Bbl
- The oil market will see a supply deficit of about 1 MMBbl/d persisting throughout the year, according to a note dated April 1
- MS also increased its forecast for daily Russian oil output production losses to 2 MMBbl/d , up from 1 MMBbl/d