WTI and Brent are ~-$0.30 apiece, with the former holding just above the $90.0 mark at typing. Both benchmarks sit a little above multi-month lows made last Friday as demand worry (particularly in U.S. gasoline) has taken focus for the space, countering prior concerns re: tightness in crude supplies.
- Average U.S. gasoline prices collated by Gasbuddy dipped below $4 per gallon for the first time since March (after peaking at ~$5.03 in mid-June), potentially reflecting the easing of supply tightness in that space.
- Keeping within the U.S., the latest round of API inventory estimates saw reports point to a large, surprise build in crude stockpiles, with an increase in distillate and Cushing hub stocks, and a drawdown in gasoline inventories observed. The result comes ahead of EIA data later today, with BBG estimates calling for a relatively small build in crude inventories (potentially adding to the significant upside surprise observed at last week’s release).
- Elsewhere, an S&P Platts survey has pointed to OPEC+ raising output in July by the most in five months, but remaining short of planned output increases (Jul output +490K bpd vs. +648K bpd expected). While the group as a whole has pumped the most crude since March, the gap between production and quotas continues to widen, sitting at >2.8mn bpd.
- Brent’s prompt spread has continued to drift lower, printing ~$1.42 at typing (vs. ~$1.75 earlier this week), reflecting moderating worry re: tightness in near-term supplies of crude.