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Mid-Day Oil Summary: Crude Steady

OIL

Crude prices are holding largely steady today rallying yesterday to the highest since May 29 at $84.55/bbl. Support came from better risk sentiment, as equities and other commodities rise. Crude broke the 200-day moving average as outlooks expected crude balances to tighten and the summer driving season ticks higher.

  • Brent AUG 24 down 0.1% at 84.18$/bbl
  • WTI JUL 24 down 0.1% at 80.26$/bbl
  • The demand outlook remains uncertain with mixed data in China and a drop in refinery output by 1.8% y/y in May amid maintenance and weak margins.
  • A tropical storm warning has been issued for a portion of the Western Gulf of Mexico Coast.
  • The API US oil inventory data is due at 16:30ET ahead of the day delayed EIA Weekly Petroleum Status Report on June 20.
  • Venezuela’s National Assembly has begun discussions about a Chevron proposal to extend a joint production operation with PDVSA until 2047.
  • Goldman Sachs see Brent rising “modestly” to an August peak of $86/bbl amid a summer deficit, according to Bloomberg.

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