WTI drops below $72, shrugs off optimistic IEA’s oil market view

In its latest oil market report published on Wednesday, the International Energy Agency (IEA) said that “rebounding air traffic and the release of pent-up Chinese demand dominate the recovery” in global oil demand.

Additional takeaways

Russia’s oil exports fell by more than 500,000 bpd to 7.5 mln bpd in Feb.

Russia’s oil export revenue in Feb fell $2.7 bln m/m to $11.6 bln, or nearly half pre-war levels.

Russian oil production remained near pre-war levels in Feb..

Much of supply overhang reflects russian supply seeking new destinations after EU bans.

Global oil stocks at nearly 7.8 billion barrels, highest level since Sept 2021.

Global oil stocks have built to levels not seen in 18 months.

World oil supply is outstripping lacklustre demand but markets will balance in middle of year.

Global oil demand is set to rise by 2 mln bpd in 2023 to 102 mln bpd.