Light Bid To Start The Week

A slightly softer USD and uptick in both U.S. equity index futures and mainland Chinese equities allowed a mild bid to build in crude overnight, with WTI & Brent trading up ~$0.30 at typing.

• A reminder that Friday saw a RTRS report note that "U.S. crude oil shipments to China will rise sharply in coming weeks, U.S. traders and shipbrokers and Chinese importers said, as the world's top economies gear up to review a January deal after a prolonged trade war. Chinese state-owned oil firms have tentatively booked tankers to carry at least 20 million barrels of U.S. crude for August and September, the people said, moves that may ease U.S. concerns that China's purchases are trending well short of purchase commitments under the Phase 1 of the trade deal. China had emerged as a top U.S. crude buyer, taking $5.42 billion worth in 2018 before trade tensions brought flows to a near halt." Time will tell whether this is just words or a commitment to firmer action.
• Elsewhere U.S.-Iranian tensions have been evident, which would have also been supportive for crude.
• Also worth noting that the latest Baker Hughes rig count saw 4 fewer active oil rigs in the most recent weekly sample period.
• A reminder that Friday also saw a RTRS source piece note that "An OPEC+ ministerial panel monitoring the group's oil supply reduction deal will hold its next virtual meeting on Aug. 19, a day later than previously planned, without giving a reason for the date change."