Oil Complex Drifting Lower

Oil fell yesterday pushing Brent back below 110$/bbl after President Biden said he’ll ask the Persian Gulf Alliance to boost production when he travels to the area next month. Biden is due to travel to the Middle East from 13^th to 16^th July.

• Earlier in the day OPEC ratified their existing plan to increase production in August by 648kbpd to bring their supply back to early 2020 levels before the pandemic related cuts.
• Brent SEP 22 down -0.5% at 108.51$/bbl
• WTI AUG 22 down -0.6% at 105.09$/bbl
• Gasoil JUL 22 up 1.7% at 1179.5$/mt
• WTI-Brent up 2.8$/bbl at -6.08$/bbl
• Concerns for future oil demand on the back of ever increasing economic risks continue to put more downward pressure on the market but ongoing supply outages in Libya and Ecuador are keeping the physical market tight. The prompt time spreads continue to reflect the tight supply with the Sep-Oct spread trading higher. Moves in the longer dated spreads are more closely linked to the moves in the outright futures.
• Brent SEP 22-OCT 22 up 0.06$/bbl at 3.5$/bbl
• Brent DEC 22-DEC 23 down -0.06$/bbl at 11.76$/bbl
• Trading in refined product crack spreads remains volatile with tight supply and low stocks feeding high prices over the last few months. More recently concerns for the economy have combined with signs of lagging US product demand and slightly higher middle distillate supplies to Europe and the US East Coast to bring spreads back to end of April levels again. Gasoline and Diesel spreads however remain well above start of year levels.
• US 321 crack down -0.8$/bbl at 47.12$/bbl
• US gasoline crack down -1.3$/bbl at 42.56$/bbl
• US ULSD crack up 0.2$/bbl at 56.23$/bbl