Crude Firms on Tentative US Debt Deal

Crude prices have held up momentum from late last week, edging higher Monday on a tentative US debt ceiling deal between President Joe Biden and House Speaker Kevin McCarthy.

• Brent JUL 23 up 0.5% at 77.3$/bbl
• WTI JUL 23 up 0.6% at 73.12$/bbl
• Gasoil JUN 23 down -0.2% at 691$/mt
• WTI-Brent up 0.06$/bbl at -4.2$/bbl
• Crude was supported last week by risks of future cuts to OPEC+ production at the 3-4 June meeting after a warning to oil speculators from the Saudi Energy Minister.
• Last week, Brent and WTI rose by more than 1%, gaining for a second week.
• Crude upside has been limited by US economic and recession concerns, fears around the Chinese recovery and suggestions by Russian Deputy PM Novak that OPEC+ would stick to current quotas.
• Brent JUL 23-AUG 23 down -0.03$/bbl at -0.06$/bbl
• Brent DEC 23-DEC 24 up 0.1$/bbl at 3.37$/bbl
• This week, crude markets will look for manufacturing and services data in China as well as U.S. nonfarm payroll data on Friday for signals on economic growth and oil demand.
• US gasoline cracks are reverting slightly but remain supported by low inventory levels ahead of the upcoming summer driving season. EIA implied demand data last week showed a boost ahead of the holiday weekend. Diesel crack spreads remain low with weak demand concerns and recent increasing refinery runs rates.
• US gasoline crack down -0.4$/bbl at 35.74$/bbl
• US ULSD crack down -0.1$/bbl at 26.24$/bbl