Crude Markets Hold Yesterday's Gains on Russian Supply Optimism

Oil is flat Wednesday holding yesterday’s gains driven off optimism around Russian crude supply slipping – also apparent in higher medium/heavy sour prices as Atlantic Basin buyers try to replace sanctioned Russian barrels.

• Russia’s seaborne crude exports sunk to a six-month low in the latest four-week period to 3.1mn bps according to Bloomberg vessel tracking on signs Russia is making good on its pledge to reduce outflows.
• Brent SEP 23 up 0.2% at 79.75$/bbl
• WTI AUG 23 down -0.1% at 75.69$/bbl
• Gasoil AUG 23 up 0.5% at 760$/mt
• WTI-Brent down -0.02$/bbl at -4.11$/bbl
• Moscow said it aims to reduce its third-quarter crude export plans by 2.1 million tons, in line with its previously stated pledge to cut overseas shipments by 500,000 barrels a day in August.
• Oil was sluggish at the start of the week on disappointing data out of China indicating a fractured economic rebound which remains buoyant for gasoline and jet while diesel lags behind. Market hopes are pinned on further Chinese stimulus plans to boost the recovery.
• Brent SEP 23-OCT 23 down -0.01$/bbl at 0.12$/bbl
• Brent DEC 23-DEC 24 up 0.01$/bbl at 3.74$/bbl
• Brent’s prompt timespread was at 12 cents a barrel in backwardation, near the narrowest this month, in a sign that traders are becoming less bullish.
• The industry-funded American Petroleum Institute said that US oil inventories fell by 797,000 barrels last week. Stockpiles at the storage hub in Cushing, Oklahoma, dropped by 3 million barrels last week.
• There is optimism that the FED will raise interest rates for the last time in July but concerns remain about overall US demand.
• The market will be watching for confirmation of the stocks drawdowns in data from the weekly EIA report on Wednesday at 10:30 a.m. EDT (1430 GMT) as well as any further signs of gasoline demand growth as the US summer driving season nears its peak.
• US gasoline crack down -0.2$/bbl at 37.56$/bbl
• US ULSD crack up 0.2$/bbl at 33.99$/bbl