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Crude Holds Gains Following Saudi Cut for August


Crude holds gains after the largely expected extension to the Saudi Arabia 1mbpd production cut into August and supported by the announced 500kbpd cut to Russia exports in August. The Russian export cut comes after the country earlier this year pledged to cut production by the same amount from a February baseline through 2024.

  • The UAE Energy Minister said OPEC+ always seeks to achieve balance in supply and demand of oil market to avoid accumulation of oil stock, which would increase speculation according to WAM.
  • Next technical resistance for Brent is up at the 21 June high of 77.25$/bbl and WTI up at 72.72$/bbl.
  • Crude prompt spreads are relatively unchanged following the announcements, but Dec23-Dec24 has followed the move to extend the recovery from late last week.
    • Brent SEP 23 up 1.2% at 76.34$/bbl
    • WTI AUG 23 up 1.3% at 71.53$/bbl
    • WTI-Brent down -0.22$/bbl at -4.69$/bbl
    • Brent SEP 23-OCT 23 up 0.04$/bbl at 0.15$/bbl
    • Brent DEC 23-DEC 24 up 0.22$/bbl at 2.95$/bbl
    • WTI AUG 23-SEP 23 up 0.03$/bbl at -0.11$/bbl
    • WTI DEC 23-DEC 24 up 0.22$/bbl at 3.2$/bbl

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