Crude Prompted Higher On Debt Ceiling Optimism

Renewed optimism about the US passing a crucial bill surrounding its debt ceiling has prompted crude higher in a similar fashion to the start of the week. Crude has also been bolstered by a potential rate hike pause in June.

• Brent AUG 23 up 0.7% at 73.11$/bbl
• WTI JUL 23 up 0.6% at 68.51$/bbl
• Gasoil JUN 23 up 0.3% at 664.75$/mt
• WTI-Brent up 0.66$/bbl at -4.42$/bbl
• Lacklustre data out of China, the forefront of global oil demand hopes in 2023 saw crude tumble this week as well as fears surrounding the debt ceiling talks.
• Brent AUG 23-SEP 23 down -0.01$/bbl at 0.1$/bbl
• Brent DEC 23-DEC 24 up 0.16$/bbl at 2.65$/bbl
• The Chinese data fears centred around contracting factory activity in May – it’s lowest in five months and a service sector expanding at the slowest pace in four months.
• Supply focus remains on the OPEC+ meeting at the weekend as some countries, such as Russia and Iraq, have suggested no changes to production targets are currently planned. The Saudi Arabia warning to market speculators last week provided some upside support.
• US crude oil inventories rose by about 5.2 million barrels last week, according to API figures. The EIA figures come out today at 16:00 BST, 11.00 EDT – delayed by a day because of the Memorial Day holiday Monday.
• Oil product margins remain weak with gasoline easing back from the peak last week. Diesel crack spreads remain low with sluggish demand concerns and recent increasing refinery runs rates. Gasoline is expected to see more support now the summer driving season has officially begun – marked by Memorial Day weekend.
• US gasoline crack down -0.4$/bbl at 34.24$/bbl
• US ULSD crack up 0$/bbl at 26.52$/bbl