Mid-Day Oil Summary: Crude Extends Gains

Crude prices are extending yesterday’s gains during the European morning. Crude continues to be supported by geopolitical uncertainties, demand optimism and the early start of the hurricane season in the Atlantic.

• Brent SEP 24 up 0.8% at 87.27$/bbl
• WTI AUG 24 up 0.8% at 84.07$/bbl
• Hurricane Beryl has become the earliest ever category 5 in the Atlantic as it moves towards Jamaica and across the Caribbean Sea later this week. The current path heads to the Yucatan Peninsula and southwestern Gulf of Mexico.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• Loadings of the 12 main North Sea oil grades in August are set to fall to 1.83mb/d, or 56.76mbbl, according to Bloomberg calculations.
• Venezuelan President Nicolas Maduro said on Monday he had accepted a proposal to restart direct talks with the U.S.
• Venezuelan oil exports were flat in June m/m at 760,000 bpd with U.S. special licenses supporting around half the volumes to head to the U.S. and Europe according to LSEG data.
• Libya plans to export 32.44m bbl, or 1.05m b/d of crude in July, according to a loading programme seen by Bloomberg.
• Iran’s Oil Minister Javad Owji said that the country’s oil output had reached 3.57mn bpd according to Tasnim reports.
• India’s refiners have increased imports of medium-sour Russian Urals in June to 1.60mb/d and above May’s record of 1.57mb/d, according to Kpler data cited by Bloomberg.
• Short-term indicators in the physical crude market remain mixed despite the advance in flat price due to geopolitics, elections, expectations of supportive Q3 crude balances and the predicted active hurricane season, according to Sparta Commodities.