- Oil is trading lower today, around $73.25, extending losses from yesterday
- The API estimates a US crude inventory build of 1.8 MMBbls and a 1.6 MMBbl build at the Cushing storage hub
- Sinopec says Chinese oil demand growth to slow in 2024 (BBG)
- China’s largest state-owned refiner said that they expect the country's crude demand growth to slow to 1.7% in 2024 from 16.1% in 2023
- Growth in 2023 was particularly strong due to China ending its Covid-Zero measures, with growth now returning to long-term trends
- Demand growth for gasoline, diesel, and jet fuel are all expected to decline in 2024; however, refining capacity will increase
- India seeks more Middle Eastern crudes as shipping issues persist (BBG)
- Indian refiners are looking to acquire more Middle Eastern crude as the risk of longer shipping times and higher tanker rates has increased due to attacks in the Red Sea
- Shipping companies are asking Indian refiners to pay a higher premium given the events, but the refiners are concerned about potential impacts on refinery margins
- The Indian government is advising merchants to seek additional suppliers, as crude shipped from Russia’s Black Sea ports may be impacted