- Oil extends losses amid a recovering dollar, and concerns about an economic slowdown
- June ’23 WTI lost nearly 75c this morning to trade around $78/Bbl
- Equities and yields are trading lower ahead of earnings from major tech and consumer companies this week
- A stronger dollar also weighed on crude prices, making dollar-denominated commodities more expensive for buyers holding other currencies
- However, the market awaits China's Golden Week holiday in early May to see if it signals a strong economic recovery (BBG)
- The unresolved crude export dispute involving Iraq, the Kurdish government, and Turkey is keeping 0.45 MMBbl/d of supply out of the market
- Russian crude exports have not decreased despite the announced cuts, with flows reaching a new high of 3.4 MMBbl/d on a four-week average basis (BBG)
- Russian refinery rates have stayed consistent since the beginning of the year, at around 0.720 MMBbl/d
- China's imports of Urals-grade Russian crude oil could hit an 11-month high in April (Reuters)
- China bought 0.265 MMBbl/d of Russian Urals, marking a 36% increase from March
- In 2023, China accounted for around 20% of Russian crude exports, while India purchased more than 70% of Russian crude
- China is "buying up Russian crude at a discount and then selling it to other countries at a profit," according to Kpler’s Matt Smith