Mid-Day Oil Summary: Crude Falling on Week

Crude markets have found support since mid-week amid optimism of US Fed rate cuts in September ahead of US May payroll data out later and with a readjustment following the sharp fall in reaction to OPEC+’s output plan. However, they remain down around 1.5% week on week.

• Brent AUG 24 up 0.5% at 80.26$/bbl
• WTI JUL 24 up 0.6% at 75.97$/bbl
• US nonfarm payrolls are due for release at 08:30 ET. Payrolls are forecast to rise by 180k with the unemployment rate stable at 3.9%.
• Crude curve backwardation is strengthening again this week as the front month futures are regaining some ground after the initial sharp decline at the start of the week.
• China's crude oil imports stood at 46.97 million metric tons, or 11.06 mn bpd in May according to customs data on Friday vs 10.93mbpd in April.
• China’s imports of Iranian crude jumped to 1.54mn bpd in May according to Kpler - a seven-month high.
• Brazil: oil production was at 3.195mbpd in April, -4.8% m/m, +1.7% y/y – ANP
• The project to build an oil pipeline in parallel to the proposed Power of Siberia 2 gas project linking Russian oil and gas with China is in the very early stages of discussion, according to Russia’s Deputy PM Alexander Novak, cited by Interfax.