Global Oil Market Weekly Highlights

Nigeria's Dangote refinery is making strategic moves to secure a consistent crude oil supply and expand its exports of low-sulfur straight-run fuel oil (LSSR) to Europe.

Western Canadian oil producers face dual threats from wildfires in Fort McMurray and Fort Nelson and a potential railroad strike starting May 22.

Refining margins in Asia have plummeted to their lowest in seven months, prompting a shift away from expensive Middle Eastern crude towards cheaper alternatives from the Americas.

Since the Trans Mountain Pipeline Expansion (TMX) in Canada began operations in early May, crude cargo sales at its Westridge docks near Vancouver, BC, have shifted from direct bilateral agreements to brokered transactions.

American shale production is set to reach a six-month high in June, hitting 9.85MM b/d, as reported by the Energy Information Administration (EIA).

The US has seen a significant increase in renewable diesel production, from 791MM gal/y (51.6K b/d) in 2021 to 3B gal/y (195.7K b/d) by 2023, leading to an oversupply and driving Renewable Identification Numbers (RINs) prices to a five-year low.

OPEC Optimism vs. IEA Concerns: Diverging Oil Demand and Supply Forecasts for 2024.

Recent analyses by Macquarie and Standard Chartered Bank highlight cautious outlooks for the oil market amidst geopolitical tensions and economic factors.

Recent developments within OPEC+ underscore ongoing tensions over member countries' oil production quotas, echoing past controversies that nearly fractured the alliance.