Crude Back Positive on the Day Amid Lower Supply and Possible China Support

Crude moves back positive on the day with OPEC supply reductions and potential China economic support offsetting concerns for a US recession ahead of the expected Fed rate hike this week.

• Russia’s seaborne crude flows from Baltic and Black Sea ports slumped to the lowest in seven months according to Bloomberg vessel tracking as cuts finally filter through.
• India’s oil imports are at an 8-month low in July because of the monsoon season and maintenance according to Kpler figures.
• Turkish and Iraqi officials will discuss re-opening the closed Ceyhan pipeline when Turkish President Recep Tayyip Erdogan visits Baghdad – though a date has not been specified.
• Crude time spreads are holding onto gains seen this month with curve backwardation the strongest since April and the bearish puts skew the least since early March.
  • Brent SEP 23 up 0.6% at 83.2$/bbl
  • WTI SEP 23 up 0.6% at 79.25$/bbl
  • WTI-Brent down -0.04$/bbl at -3.95$/bbl
  • Brent SEP 23-OCT 23 up 0.04$/bbl at 0.3$/bbl
  • Brent DEC 23-DEC 24 up 0.07$/bbl at 4.35$/bbl
  • WTI SEP 23-OCT 23 up 0.04$/bbl at 0.38$/bbl
  • WTI DEC 23-DEC 24 up 0.13$/bbl at 4.88$/bbl