Mid-Day Oil Summary: Crude Edges Back

Crude is losing ground today, paring some of the robust gains made during US hours yesterday. However, sentiment overall remains supportive amid expectations of a tighter balance over the summer.

• Brent AUG 24 down 0.6% at 85.49$/bbl
• WTI AUG 24 down 0.6% at 81.11$/bbl
• WTI-Brent down 0.02$/bbl at -4.36$/bbl
• WTI AUG 24-SEP 24 down 0.03$/bbl at 0.74$/bbl
• The OPEC production cut extension into Q3 and a potential summer boost to fuel demand are supporting prices despite the disappointing early summer demand data.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• Money managers net long WTI crude positions were relatively unchanged on the week, but the combined crude position increased due to the rebound in Brent.
• A total of 614mbbls of open August 24 Brent options positions are currently due to expire against the futures close today.
• Chinese refiner Rongsheng Petrochemical has bought two 550,000 bbl Canadian Access Western Blend crude cargoes via the recently expanded TMX for September delivery according to Reuters sources.
• India’s state-owned refineries are in talks with Russia to secure term deals for crude supplies following similar discussions with private refiner Reliance.