Crude Lower On Lack Of China Stimulus Details

Oil prices were lower on the back of softer risk appetite driven by the lack of further details on China stimulus. Announcements were expected after Friday’s State Council meeting and now markets are looking to July’s Politburo meeting. The USD index rose 0.2% which also weighed on crude.

• Prices fell 0.6% with WTI holding above $70/bbl and Brent above $75. WTI is now at $71.34 after reaching a low of $70.82 followed by a high of $72.27. Brent fell to $75.34 during the APAC session and then reached a high of $76.93. It finished Monday at $76.13. Trading may have been impacted by the US holiday.
• While OPEC and the IEA are forecasting a tightening of the market in H2 2023, definite signs of this will be needed for oil to rally. There are some signs of increased demand in China and for gasoline in the US supported by lower prices.
• Iraq and Turkey are scheduled to resume talks to reopen a pipeline that has been closed since March. It carries 500kbd.