WTI consolidates the start of week rally at daily resistance

• West Texas Intermediate crude is sinking on Thursday. 
• Investors fear a recession in the aftermath of the Fed. 

West Texas Intermediate crude oil surged higher and was posting a 1-1/2 week high and gasoline posted a 2-week high. A weaker US Dollar on Monday was also bullish for energy prices. Easing banking sector concerns helped lift the mood after US authorities said they were considering expanding a lending facility to help regional banks shore up their balance sheets. West Texas Intermediate is currently flat near $72.80 after rallying from $69.18.

´´The extension of a lending facility for the sector comes as a buyer was found for the Silicon Valley Bank. This saw crude oil track broader markets amid the improved risk appetite,´´ analysts at ANZ Bank said.  ´´The market was also encouraged by improving demand prospects. China’s top refiner, CNPC said that apparent oil demand in the country may expand by 5.1% to 756mt this year. This follows data showing that US exports of crude oil and refined products surged to a record 12mb/d. Disruption to supply is also raising concerns.´´ The analysts at ANZ  also noted that Exxon Mobil said it would begin shutting down its refinery in Gravenchon France, representing 20% of the country’s refinery capacity, as protests across the country impact crude supply.

Additionally, last Wednesday, India's oil ministry reported that India Feb crude oil imports rose +8.5% YoY to 19.1 MMT, the most in seven months. Also, an EIA report showed that US crude oil inventories as of March 17 were +7.6% above the seasonal 5-year average, gasoline inventories were -4.0% below the seasonal 5-year average, and distillate inventories were -8.8% below the 5-year seasonal average. 

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended March 24 rose by +4 rigs to 593 rigs, moderately below the 2-1/2 year high of 627 rigs posted on December 2. US active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in US crude oil production capacity.