CRUDE WRAP: WTI (M4) SETTLES USD 0.70 LOWER AT 81.93/BBL; BRENT (N4) SETTLES USD 0.87 LOWER AT 86.33/BBL

Analysis details (19:32)

The crude complex saw losses on Tuesday, albeit in a choppy day in light newsflow with more geopolitical premium unwind. WTI (M4) and Brent (N4) futures saw gains through the European morning to highs of USD 83.30/bbl and 87.80/bbl, respectively, after punchy rhetoric from Israeli PM Netanyahu as he said they will enter Rafah with or without a ceasefire and hostage release. Later on, AFP citing an Israeli official, reported that Israel is to wait until 'Wednesday night' for Hamas' response to the Gaza truce proposal. Nonetheless, and in wake of the hot US ECI, all of the gains were wiped out by the NY energy cash products open as WTI and Brent hit troughs of 80.95/bbl and 85.45/bbl, before paring some of the move through the NY afternoon and into settlement. Elsewhere, via a Reuters survey, OPEC's April oil output fell by 100k BPD M/M to 26.49mln BPD, led by Iran, Iraq and Nigeria. Lastly, Goldman Sachs expects Brent to edge down to USD 84/bbl by December, while it still sees value in long oil positions as a hedge against geopolitical supply shocks and from an attractive roll yield perspective. Looking ahead, participants await the weekly private inventory data (expectations below) ahead of the weekly EIA numbers on Wednesday. Crude -1.1mln, Distillate -0.2mln, Gasoline -1.1mln. 

30 Apr 2024 - 19:32- EnergyResearch Sheet- Source: Newsquawk