The front-month Brent futures contract ticked up slightly from $73.10/bbl at 07:40 GMT to $73.55/bbl at 09:50 GMT. While this level attracted some selling, perhaps from longs taking profit, the flat price has since risen to $73.65/bbl at 10:40 GMT (time of writing). API estimates of weekly changes in US oil inventories for the week ending 21 Mar recorded a 4.6mb draw in crude oil stocks alongside declines of 3.3mb and 1.3mb in US gasoline and distillate inventories, respectively. The market will now await the EIA’s official release of w/w changes in US oil inventories, due today at 14:30 GMT. In other news, Ashley Keltym, an analyst at Panmure Liberum, told Reuters that physical markets are “tightening” due to shifting flows following US sanctions, especially with President Trump’s plan to hit buyers of Venezuelan crude with 25% tariffs, particularly impacting buyers in China and India. In related news, Reliance Industries Ltd. has paused further purchases of Venezuelan crude. However, the refiner is expected to take delivery of a cargo of Merey crude that is currently on its way from Venezuela to India. In other sanctions, Vitol CEO Russel Hardy said he sees Russian sanctions lasting another 1-2 years. At the same time, Gunvor chairman Torbjörn Törnqvist has stated that gas would be prioritised for early ceasefire concessions. Finally, at the time of writing, the May/Jun’25 and May/Nov’25 Brent futures spreads stood at $0.64/bbl and $3.20/bbl.
