Crude pushes towards higher end of range

Crude prices worked their way higher yesterday and this morning towards the higher end of the recent trading range.

• The market is still balancing the impact of delayed EU plans for a ban on Russian oil, the certainty over Chinese demand and global economic growth, and the struggling OPEC+ production. US oil product demand is expected to increase during the summer months adding to the already tight product market.
• Brent JUL 22 up 0.5% at 114.08$/bbl
• WTI JUL 22 up 0.5% at 110.33$/bbl
• Gasoil JUN 22 up 0.2% at 1095.25$/mt
• The EU are giving mixed messages regarding the prospects of a Russian oil embargo. Some EU members were hoping for an agreement ‘within days’ or at the leader’s summit next week, but Hungary continues to oppose a ban stating negotiation are likely to continue into June.
• OPEC+ have so far been unable and unwilling to increase production beyond existing plans. Saudi Arabia yesterday stated that there is enough crude oil in the market and that tightness is coming from refined products and not crude.
• WTI discount to Brent widened after US announced plans to offer 39mbbls of sour crude for Jul delivery and 1.1mbbls of sweet crude for June delivery as part of their planned barrel release..
• WTI-Brent down -0.13$/bbl at -3.75$/bbl
• Brent JUL 22-AUG 22 up 0.05$/bbl at 2.92$/bbl
• Brent DEC 22-DEC 23 up 0.21$/bbl at 12.45$/bbl