Mid-Day Oil Summary: Crude Erasing Yesterday’s Gains

Crude is losing ground today, reversing much of yesterday’s rally. Brent had climbed to a high of $87.39 after an unexpected large US crude inventory draw and with the partial evacuation of some oil platforms in the path of Hurricane Beryl.

• Brent SEP 24 down 0.7% at 86.71$/bbl
• WTI AUG 24 down 0.8% at 83.2$/bbl
• Hurricane Beryl could impact around 73kbd of federal offshore oil output, according to the National Hurricane Center and Ocean Energy Management data.
• Port of Brownsville, near the U.S./Mexico border, said on Wednesday that it would limit ship traffic due to high winds from Hurricane Beryl.
• U.S. crude shipments heading to Europe fell to the lowest since July 2022 at 1.45mbpd in June with European buyers sourcing cheaper regional and West African oil, according to Reuters citing Kpler data.
• Senior U.S. and Venezuelan officials resumed talks on Wednesday as Washington tries to push the Maduro regime to “competitive and inclusive” elections set for July 28.
• Shandong teapot refiners continued to experience weak domestic demand in June according to Vortexa, limiting ESPO imports according to Vortexa.
• Increased demand and decreased supply have driven significant changes in the global crude and condensate balance, according to Kpler.