Mid-Day Oil Summary: Crude on the Rise

Crude prices are ticking higher today but holding within the $2/bbl range seen since June 19. Oil prices are supported by a pickup in China’s Caixin manufacturing PMI, a slightly softer US dollar and geopolitical uncertainty amid escalating tensions between Israel and Hezbollah.

• Brent SEP 24 up 0.7% at 85.56$/bbl
• WTI AUG 24 up 0.6% at 82.04$/bbl
• No new energy data releases are expected today with focus likely on US June manufacturing ISM/PMI amid hopes of a US Fed interest rate cut.
• Hurricane Beryl has formed in the Atlantic and is headed towards the Caribbean’s Windward Islands.
• Saudi Aramco may cut prices for its Arab Light crude sold to Asia again in August following the first cut in five months in July, according to a Bloomberg survey.
• Around 20 vessels loaded from the recently opened Trans Mountain Pipeline expansion in its first month in service according to Kpler.
• China’s Rongsheng has bought three Canada Access Western Blend cargoes via the TMX pipeline for September arrival according to Bloomberg sources.
• Crude imports to Asia ticked lower year on year in the first half of 2024 despite expectations for the region to lead global demand growth according to Reuters.
• “Declining US production in Q4 and a slow-walk back of returning OPEC+ supply” will support Brent prices although summer upside is limited by fuel demand, according to Rabobank.