Brent back within recent traded range

Crude tested resistance levels yesterday before falling back within the recent traded range.

• Brent JUL 22 unchanged at 111.98$/bbl
• WTI JUN 22 up 0.5% at 112.94$/bbl
• Gasoil JUN 22 down -2.5% at 1063$/mt
• Late in the day prices fell as the US announced they will allow dialogue with Venezuela and allow Chevron to negotiate its license with the state oil company PDVSA. Chevron would not be permitted to drill or export Venezuelan oil.
• Signs are that China’s covid situation may be easing and that Shanghai could start easing restrictions soon after 3 days of no new cases. Chinese demand will not however immediately recover and one area in Beijing is just entering a 7 day lockdown.
• The US will suggest tariffs on Russia oil as an alternative to bans, as the EU struggle to reach an agreement on their proposed oil sanctions. Hungary is still opposed to the ban saying it would cost them at least $810m.
• API data last night showed draws in crude, gasoline and at Cushing pushing WTI closer to Brent and supporting gasoline prices.
• WTI-Brent up 0.08$/bbl at -1.83$/bbl
• Brent JUL 22-AUG 22 down -0.06$/bbl at 2.02$/bbl
• Brent DEC 22-DEC 23 up 0.02$/bbl at 12.19$/bbl