Brent pushing towards range high

Crude oil trading up 0.7% today towards the top of the recent range between 102 and 115$/bbl. Easing of covid cases in Shanghai and the approaching US driving season could boost demand as OPEC are in no hurry to increase production.

• Brent JUL 22 up 0.7% at 113.31$/bbl
• WTI JUL 22 up 0.6% at 110.93$/bbl
• Gasoil JUN 22 down -1% at 1057.75$/mt
• WTI-Brent down -0.03$/bbl at -2.39$/bbl
• Saudi Arabia indicated its continued support for Russia as part of OPEC+ saying they were hoping “to work out an agreement with OPEC+ … which includes Russia”. They said they would increase production if the demand was there. The existing OPEC+ production quota plan is due to expire in 3 months.
• Diesel and Gasoline demand has not been significantly impacted by high pump prices so far and is likely to pick up with the start of the traditional US diving season next week.
• The demand picture from China remains unclear with no cases in Shanghai leading to possible easing soon but cases continue to rise Beijing as lockdowns remain firmly in place.
• A large build in Bakes Hughes rig count was seen on Friday with an increase in oil rigs by 13 to 576. However increasing rig counts has not translated into significantly higher production due to supply constraints and costs.
• Brent JUL 22-AUG 22 up 0.1$/bbl at 2.66$/bbl
• Brent DEC 22-DEC 23 up 0.19$/bbl at 12.52$/bbl