India Snaps Up Russian Crude
April 26, 2022
The market was very volatile in yesterday’s trading. Front-month ULSD futures had a $0.3196 range from high to low on the day, which is huge. Today front-month ULSD futures are up again making the two-day gains $0.42 cents per gallon from low to high. Front-month RBOB futures had a $0.1614 range. There only real news was that China was extending the lockdowns due to COVID-19. This threw some more demand destruction into the mix and pressured gasoline and crude lower. Diesel on the other hand has low inventories and demand has managed to remain good pushing the diesel market higher.
Data from the US Department of Energy showed that crude oil stocks in the US SPR drew about 2.88 million barrels in the week ending April 22. SPR stocks fell to 553.1 million barrels, its lowest level since 2002.
The EU’s top diplomat, Josep Borrell, said there is insufficient support from European Union member states for a complete embargo or punitive tariff on Russian oil and gas imports.
India has bought more than twice as much crude oil from Russia in the two months since its invasion of Ukraine as it did in the whole of 2021, as Indian refiners snapped up discounted oil that others have shunned.
The market is also having to deal with comments from Russia about nuclear war. Russia accused NATO of engaging in a proxy battle that created a serious risk of nuclear war as Washington convened its allies at a German airbase to pledge the heavy weapons Ukraine needs to achieve victory; according to Reuters.
The early estimates for the inventory report this week are crude up 2.167 million barrels, gasoline up 483,000 barrels and distillates down 583,000 barrels.