Mid-Day Oil & Products Summary: Crude Steady

Oil prices are holding largely steady today after yesterday’s rally to a high of $82.17/bbl ahead of the OPEC monthly oil report and EIA short term energy outlook both due out today.

• Brent AUG 24 down 0.1% at 81.52$/bbl
• WTI JUL 24 down 0.2% at 77.6$/bbl
• WTI-Brent down 0.04$/bbl at -4.34$/bbl
• Brent AUG 24-SEP 24 up 0.02$/bbl at 0.42$/bbl
• Reuters reports a Hamas official saying that the group accepts the UN ceasefire resolution and is ready to negotiate over the details. Blinken says the Hamas statement regarding the UN proposal is "a hopeful sign."
• The crude options put skew remains unchanged this week with implied volatility falling following market price swings last week. Market focus this week is on the global oil demand outlook ahead of the US Fed meeting and upcoming industry reports.
• Saudi crude exports to China are expected to fall for a third straight month in July to about 36mn bbls according to Reuters sources.
• US oil production could decline about 1mb/d by the second half of 2025 unless rig counts rise, according to Adam Rich at energy investor Vaughan Nelson cited by Bloomberg.
• Diesel and gasoline cracks are edging down today as markets remain well supplied globally while demand concerns remain.
• US gasoline crack down 0.1$/bbl at 23.59$/bbl
• US ULSD crack up 0.1$/bbl at 23.6$/bbl
• The Ukrainian military claimed responsibility for an attack on the Novoshakhtinsk oil refinery in the Rostov-on-Don region on June 5.
• China’s refinery runs are declining due to seasonal turnarounds and poor export margins according to Vortexa.
• CDU Capacity Utilisation rates at China’s state-owned refineries are expected to continue falling in the week to June 13, according to OilChem, as Dalian Xitai will overhaul the whole refinery.