Mid-Day Oil Summary: Crude Up Marginally

Crude prices are up marginally on the day softer today to extend the decline from last week, stabilising after last week’s fall. Pressure remains after the OPEC+ producer group agreed to extend production cuts into Q3 before returning some supply later this year.

• WTI JUL 24 up 0.1% at 77.08$/bbl
• Gasoil JUN 24 up 0.4% at 734.5$/mt
• Middle East negotiators are urging Israel and Hamas to agree to a ceasefire and hostage release deal outlined by U.S. President Joe Biden on Friday, but Israel said there will be no formal end to the war while Hamas retains power.
• The return of some supply earlier than some analysts had expected is adding bearish pressure to the market to add to ongoing concerns for global demand amid a weaker US economic outlook and China demand growth uncertainty.
• Kazakhstan, Russia and Iraq will submit an updated schedule of compensations for overproduction since January 2024 to the OPEC Secretariat by the end of June according to the Kazakh Energy Ministry's press service.
• Goldman Sachs said it viewed the latest OPEC+ meeting at bearish despite the cut extension and expects Brent in the $75-90/bbl range due the signalling of the gradual phaseout of voluntary cuts.
• Libya’s observed crude and condensate shipments fell 5% in May after climbing to an 18-month high in April, Bloomberg said.