Mid-Day Oil Summary: Crude Slides

Crude front month is falling today amid a more pessimistic demand outlook driven by concerns of stickier US inflation and thus delays to Fed rate cuts.

• Brent JUL 24 down 1.4% at 82.52$/bbl
• WTI JUN 24 down 1.6% at 78.55$/bbl
• The US Fed is still looking for more evidence of slowing inflation before easing rates, with market focus on the impact on future oil demand growth.
• Crude has seen little impact from geopolitical risks in producing countries with no immediate impact on energy policy from the death of the Iranian President and health issue of the Saudi king.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• The crude tanker, Dubai Angel, arrived at the Westridge Marine Terminal in Vancouver on Monday, preparing to load the first cargo from the expanded TMX pipeline according to LSEG.
• The Greek Navy has resumed drills in the Laconian Gulf again, pushing away Russian oil transfers that had just returned. An official note says the drills will go on until June 3.
• ExxonMobil’s Joliet refinery had a fire inside a unit on Saturday according to a company spokesperson cited by Bloomberg.
• India pulled in Russian crude at a nine-month in April after Sovcomflot flows resumed according to LSEG figures.
• Russian ESPO Blend has pivoted away from Chinese independent refiners towards Indian refiners in recent months according to Vortexa.
• Brent is to remain rangebound and expected to average $84/bbl for the rest of the year, with WTI at $79.50/bbl: RBC Capital Markets.
• Diesel cracks are ticking up today, following a general uptrend since the middle of last week.
• US gasoline crack down 0.4$/bbl at 26.71$/bbl
• US ULSD crack up 0.2$/bbl at 24.67$/bbl