Brent slides to drag European oil complex lower

Brent tumbled Thursday morning ahead of the half day close in Europe before the Easter holiday, with the June contract trading at $62.93/b by 12.30pm UK time, down from $63.99/b at 16.30pm Wednesday.

OPEC and its allies convened for a talk via a conference call at 1.25pm UK time.

The market has been expecting the cartel to roll over its production cuts, but even a small tinkering to increase could trigger bearish sentiment.

Yesterday's EIA weekly oil report, which saw modest draws in US crude and gasoline stocks, but a healthy rise in distillate stocks amid a surge in Gulf Coast refinery utilization rates coupled with a very long May Brent expiry, which saw the front month crude future tumble into deep negative territory versus June, also will weight on sentiment.

Products

Premium unleaded gasoline prices saw hefty falls, outstripping crude, with barges in AR dropping to $619/mt, down $15/mt ($1.80/b).

The naphtha crack followed crude, with cargo prices dropping $9.25/mt ($1.02/b), leaving the refining margin versus Brent at around -$5.65/b.

April and May Low Sulfur Gasoil future contract were trading at $496.50 and $498.75/mt respectively at 12.30pm UK time, both down $8.75mt ($1.17/b) from yesterday's settle, and falling more than Brent. Diesel barges traded $1.75/mt below front month distillate futures.

Jet fuel barge premiums continued to climb, gaining to $20/mt above April Low Sulfur Gasoil futures, from $19.50/mt on Wednesday and $18.50/mt on Tuesday.

High sulfur fuel oil barges tumbled $10.25/mt ($1.61/b) amid a build in stocks in ARA following the closure of the Suez canal earlier.