Crude Markets Supported by Russian and Saudi Cuts

Crude prices have edged higher Friday, on track for a fourth weekly gain as supply cuts by Saudi and Russia support the market.

• Markets are assessing the impact of potential economic stimulus measures in China. Its lackluster recovery has weighed on global demand this year, while the weak GDP growth in Q2 increases the likelihood of China missing its 5% annual growth target.
• Brent SEP 23 up 0.9% at 80.34$/bbl
• WTI SEP 23 up 0.9% at 76.34$/bbl
• Gasoil AUG 23 up 1.7% at 782$/mt
• WTI-Brent down -0.02$/bbl at -4$/bbl
• Vessel tracking data shows falling seaborne crude exports out of both Russia and Saudi this month. Sentiment around Russia’s commitment to cuts had languished this year but the latest figures are providing renewed optimism.
• The expectation that the Fed will make a July rate hike the last in its current cycle is helping to support prices.
• Brent SEP 23-OCT 23 up 0.04$/bbl at 0.16$/bbl
• Brent DEC 23-DEC 24 up 0.22$/bbl at 3.66$/bbl
• US crude inventories fell last week, supported by a rise in crude exports as well as refinery utlisation - though the inventory fall fell short of expectations.
• US refinery cracks hinge on available refinery capacity. The market is optimistic that P66 Bayway NJ is returning this week – one of the biggest contributors to RBOB in the Middle Atlantic, while heat issues may be impacting a large FCC at ExxonMobil Baton Rouge.
• US gasoline crack down -2.2$/bbl at 37.69$/bbl
• US ULSD crack down -0.4$/bbl at 36.08$/bbl