Mid-Day Oil Summary: Oil Rises as Market Awaits OPEC Decision

Oil markets are maintaining their upward trajectory today ahead of the latest OPEC+ meeting set for June 2, with a rollover of current policy expected.

• Brent JUL 24 up 0.8% at 84.88$/bbl
• WTI JUL 24 up 0.8% at 80.5$/bbl
• Due to the voluntary nature of the cuts, announcements may be declared prior to the meet, usually by Saudi first followed shortly by Russia and then the rest of the group.
• The U.S. core Personal Consumption Expenditures Price Index report for April is due on Friday which should help to offer some Fed direction.
• The IRGC-linked Tasnim News Agency has reported that Iran has provided the Houthi rebels in Yemen with its latest Ghadr sea-launched ballistic missiles.
• Non-OPEC+ seaborne crude exports remain strong but both non-OPEC+ and OPEC+ are sending less barrels to an oversupplied Atlantic Basin according to Vortexa.
• ARA crude inventories rose 778k bbl or 1.4% the in week ended May 24 to 58.5m bbl according to Genscape.
• The Caspian Pipeline Consortium – which flows Kazakhstan’s oil via a Russian Black Sea Terminal – expects its oil exports to fall 7% short of targets this year due to a drop from Tengiz.
• International Oil Companies (IOC’s) operating in Kurdistan and the Iraqi Kurdistan ministry of natural resource to try and resume oil flows via the Turkish port of Ceyhan.
• BofA expects OPEC+ to extend its current cuts into the second half of the year according to Francisco Blanch, its Securities head of global commodity and derivatives research in a CNBC interview.