Crude edging higher after EIA data

Crude edged higher after the EIA reported withdrawals to crude and Cushing stocks in their weekly data.

• Brent JUL 22 up 0.3% at 114.32$/bbl
• WTI JUL 22 up 0.4% at 110.72$/bbl
• Gasoil JUN 22 up 1.8% at 1130.5$/mt
• WTI-Brent up 0.01$/bbl at -3.61$/bbl
• At 114.3$/bbl Brent is towards the upper end of the recent trading range with key resistance at 115.76$/bbl. The market continues to balance the Chinese and global demand picture against possible further supply disruption if the EU were to reach an agreement on oil sanction against Russia.
• It looks likely the EU negotiations regarding an oil ban on Russia could continue into next month with Hungary still opposed. There have been some calls for an end to EU unanimity to get a deal over the line.
• Oil products are also ticking higher as the tight market was supported further by EIA gasoline stock withdrawals. There was however a fall in the implied gasoline demand which could be a sign that high prices at the pump in the US may be having an impact. US demand is still expected to pick up over the summer driving season.
• Saudi Aramco suggested the market is balanced but needed more long-term oil and gas investment in increase the limited spare capacity.
• Crude curves remain strongly backwardated on the back of the tight supply while demand remains resilient.
• Brent JUL 22-AUG 22 up 0.16$/bbl at 3.07$/bbl
• Brent DEC 22-DEC 23 up 0.04$/bbl at 12.5$/bbl