Europe’s weakness spills over the West African market

The Suez canal blockade was mostly resolved yesterday, and traffic is resuming albeit at a slower rate. Crude prices were still relatively shielded from this event. ICE Brent front-month contract was trading at 64.8 $/b on early Tuesday, mostly driven by the cautious Russian stance ahead of the OPEC meeting on Thursday. The weak sentiment on the crude oil market primarily comes as the West African market struggles to clear for the April loading program. By looking at mobility data, US gasoline demand could reach 9 mb/d within weeks.

Apple mobility data shows that US gasoline demand could likely reach 9 mb/d imminently as the index averaged 140 last week, at a similar level to late August’s highs.