(The views and opinions expressed on this article are these of the attributed sources and don’t essentially replicate the place of Rigzone or the writer)
Rigzone’s common market watchers check out latest oil value strikes, the U.S. Spring refinery upkeep season, potential strikes from the U.S. Division of Power (DOE) and extra. Learn on for extra element.
Rigzone: What have been some market expectations that truly occurred throughout the previous week – and which expectations didn’t?
Vikas Dwivedi, International Oil & Fuel Strategist at Macquarie Group: Greatest market expectation that occurred throughout final week was the acceleration of macro issues associated to central-bank coverage. Following the detrimental rerating of the macro setting, oil costs fell as anticipated.
Hillary Stevenson, Senior Director of Power Market Intelligence at IIR Power: U.S. Spring refinery upkeep season could also be over earlier than anticipated with refinery runs practically flat, down 22,000 barrels per day to fifteen.376 million barrels per day week on week for week ending March 17, in accordance with the EIA. Initially IIR information indicated that we might see a second spring refinery upkeep peak in April, however that peak is getting smaller and smaller by the minute with some upkeep tasks getting pushed (P66 Sweeny, XOM Beaumont) and unplanned outage resolutions (Cenovus Toledo and Superior) anticipated.
Rigzone: What have been some market surprises?
Dwivedi: The shock was how giant the decline in oil costs have been. It seems that oil fell additional than nearly another commodity and even asset class. In our view the scale of the drop in oil costs implies a extreme recession.
Rigzone: What developments/developments will you be looking out for this week?
Dwivedi: We will probably be searching for extra updates from the macro entrance together with what a protracted recession may imply for oil demand. We’ll proceed searching for extra indicators of acceleration within the Chinese language reopening and advantages to grease demand.
Stevenson: Decrease WTI costs could spur the U.S. DOE to solicit bids for SPR replenishment, because the administration indicated they’d repurchase crude at $67-72 per barrel. Beforehand, the DOE sought bids for as much as three million barrels of crude for February supply to the SPR, nonetheless, no bids have been awarded. SPR officers famous that the bids for February injections have been about $10 per barrel too excessive and a few of them have been for candy crude when the request was for bitter.
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