The Brent futures flat price for the prompt contract has seen a stronger morning, rising from $74.50/bbl-handles, which were seen for the majority of the early hours, to $75.37/bbl at 09:30 GMT.
The Fed held interest rates for a third consecutive meeting at the 5.25% – 5.50% target range, however, markets responded positively to the forecasts that rates would cut in 2024 and end next year in between 4.50% and 4.75%.
According to Rystad Energy, India’s oil demand growth will fall from around 290kbbls/d for 2021-2023 to only expand by 150kbbls/d next year, as the economy responds to the post-pandemic rebound beginning to lose momentum.
Following ENEOS permanently closing a 120kbbls/d refinery in Japan back in Oct, Idemitsu Kosan plans to close another 120kbbls/d refinery in Mar’24, representing a total closure of 7% of Japan’s refinery capacity.
Spreads remains in contango up until June with the front and 6-month Brent futures spreads at -$0.22/bbl and -$0.41/bbl, respectively.
Asian Refinery Margins: Q1-24: $10.15/bbl, Cal24: $8.12/bbl
Europe Refinery Margins: Q1-24: $5.66/bbl, Cal24: $4.66/bbl
