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Crude Falls with Focus on Weak Demand Despite Saudi Cut for August


Crude pulls back to reverse the gains from earlier in the day as the market focuses on economic demand concerns over the tighter supplies driven by the expected Saudi production cut extension into August.

  • Further central bank rate hikes due to persistent inflation is a risk to global demand while factory activity growth in China slowed in June according to the Caixin PMI today.
  • US June ISM manufacturing data decline to 46.0 vs 46.9 est (47.2 prior) the lowest since May 2020.
  • The Saudi production cut and announced Russian export cut in August have only provided limited support to the market.
    • Brent SEP 23 down -0.6% at 74.95$/bbl
    • WTI AUG 23 down -0.7% at 70.15$/bbl
    • WTI-Brent down -0.17$/bbl at -4.64$/bbl
    • Brent SEP 23-OCT 23 up 0.01$/bbl at 0.12$/bbl
    • Brent DEC 23-DEC 24 unchanged at 2.73$/bbl
    • WTI AUG 23-SEP 23 down -0.01$/bbl at -0.15$/bbl

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