Mid-Day Oil & Products Summary: Crude Slips Back

Crude has eased back from a high of $83.34/bbl yesterday after the Fed revised up its 1-year rate forecast. Added pressure comes from an unexpected build in US crude stocks and the IEA’s downward revision of its 2024 demand expectations.

• Brent AUG 24 down 0.6% at 82.12$/bbl
• WTI JUL 24 down 0.7% at 77.97$/bbl
• The US Fed yesterday held rates steady at its June FOMC meeting, signalling just one cut in 2024 and likely to weigh on demand prospects
• The Trans Mountain pipeline is running around 80% capacity, as 22 oil tankers are scheduled to load in Vancouver in June with crude from the expanded pipeline, Trans Mountain said cited by Reuters.
• Russia is changing how oil output data used to compile OPEC+ production estimates is reported, according to Bloomberg, amid greater scrutiny over production cuts.
• Gasoline cracks have weakened further to their lowest level since February after EIA data suggested further signs of a halt to the earlier demand recovery.
• US gasoline crack down 0$/bbl at 22.17$/bbl
• US ULSD crack up 0.2$/bbl at 24.26$/bbl
• South Korea’s Hyundai Oilbank has reduced the crude processing volume at one of the CDUs at the 520kbpd refinery in Seosan to about 250kbpd for about a week, according to Reuters sources
• Singapore onshore fuel oil stocks rose 1.6% higher w/w to 19.16 million barrels (3.02 million metric tons) for the week ended June 12 according to Enterprise data Thursday.
• Singapore middle distillate stocks slipped to a four-month low for the week ended June 12 at 9.028 million barrels – down from 10.845 million barrels last week according to Enterprise data.