Products Jump, Crude Surges As Supply Risks Multiply

The energy complex is trading higher this morning with the soon-expiring May RBOB and ULSD contracts jumping a relatively modest 8 cents and 12 cents, respectively. WTI and Brent crude oil futures are exchanging hands ~$3 higher than yesterday’s settlement, spurred by the notice the White House sent to staff: settle in for a long blockade.

The Chicagoland basis market shot up yesterday after disruptions at BP’s Whiting and Exxon’s Joliet refineries spurred a rash of buying that pushed diesel premiums in the Midwest to multi-year highs. Relief is on the way as the P66 Wood River and Citgo Lemont refineries are slated to return from spring turnaround soon, but both were met with delays pushing their restarts to next week.

There’s been no news on other member nation movements after UAE announced yesterday that it will be exiting OPEC Friday, and taking 10% of the cartel’s oil production with it.

Ukraine hit one of Russia’s shadow fleet tankers early this morning, according to EnergyNewsToday, about 130 miles from the Tuapse port on the Black Sea. The Cameron flagged vessel, which was unladen at the time of the strike, is the latest of Russia’s energy infrastructure to come under fire since the beginning of the full scale war over four years ago.

In case you missed it: the EIA reports that LNG prices have risen since the Strait of Hormuz has been closed. What isn’t included in the article is the damage inflicted on Qatar’s facilities during the war is expected to hamper their exports for the next five years.