- Oil heads for a weekly gain amid ongoing Iraqi Kurdistan supply dispute
- May ’23 WTI gained 54c this morning to trade around $75/Bbl and is set to post a $5, or 8% gain this week
- Gulf Keystone Petroleum cuts production in Iraqi Kurdistan, adding to the Iraq production slowdown
- Kurdistan Regional Government to meet with Baghdad next week for talks on resuming crude shipments after no deal was made to restart Kurdish exports from Turkish ports this week
- The core personal consumption expenditure index rose 4.6% in February, below the projected 4.7% and down from January's 4.7%
- The lower-than-expected report could reassure the Fed that its interest rate hikes are slowing the economy and controlling inflation
- Also, the U.S. Dollar remains low relative to its recent highs, making oil more affordable for holders of other currencies
- Lower Energy Costs Act, passed by the U.S. House of Representatives, heads to Senate for approval (Reuters)
- The act passed the House by a vote of 225 to 204, but it appears unlikely to pass the Senate
- The bill focuses on limiting reviews of future fossil fuel projects, increasing the production of fossil fuels, and lowering energy costs
- Additionally, the Greenhouse Gas Reduction Fund, which aims to lower the price of renewable energy, would also be repealed by the bill. The Biden administration stated that the president would veto the bill if it were to pass the Senate
- Russian oil price cap to remain at $60/Bbl, says the European Commission (BBG)
- The European Commission has told its member states that the $60/Bbl on Russian oil prices will remain unchanged for now, as it is effective in reducing Moscow's revenues without disrupting the market
- According to IEA, Russian crude averaged $52.48/Bbl in exports (excluding shipping and insurance costs), with Urals crude selling for $45.27/Bbl in the Black Sea
- Meanwhile, grades like ESPO, Sakhalin, and Sokol that are exported from Asia traded above the threshold
- However, EU member states were told that there is a willingness to consider making the price-cap mechanism less rigid, but it was not clarified how this would work in practice