- Oil extends gains following a three-day advance ahead of U.S. inflation data
- June ’23 WTI gained nearly 11c this morning to trade around $73.82/Bbl
- Equities and the dollar are trading lower ahead of the release of the April CPI report this morning
- The EIA’s May STEO report forecasts an increase in demand from India and China, which is expected to offset the demand weakness in the West
- Biden administration announces timeline for replenishing SPR (BBG)
- Following maintenance work later this year, the Biden administration has announced plans to restock the SPR, which is currently at historic lows after 180 MMBbl were drawn to curb fuel prices
- The replenishment will involve both direct oil purchases and returns of oil from previous exchanges requested by refineries
- The Biden administration plans to refill oil reserves when prices reach about $70/Bbl
- The pace of repairs and the start of this purchase, which could strain the tight market, will be closely watched by market participants
- Russia nearly reaches oil output cut goal in April, says Russia's Energy Ministry (BBG)
- Russia's Energy Ministry reports that the country almost achieved its pledged oil output reduction target in April
- According to Russia’s Energy Ministry data, Russia's crude oil production in April averaged 9.67 MMBbl/d, showing a reduction of 0.443 MMBbl/d from February's production level
- However, seaborne crude exports, particularly to China, India, and Turkey, haven't reflected these cuts. As of May 5, the four-week average volume reached a record high of 3.55 MMBbl/d