OIL: Crude Rallies Towards Range Highs

Crude futures are edging higher towards the first technical resistance level of $86.18/bbl for the Brent Sep. 24 contract after S&P Global manufacturing data.

• Final US June Manufacturing PMI 51.6 (51.7 flash, 51.3 May)
• "Although input costs continued to rise sharply, the rate of inflation eased in June, while selling prices increased at the slowest pace in the year-to-date."
• Crude time spreads remain relatively unchanged on the day to hold just below the strongest backwardation since late April.  The Dec24-Dec25 spread is trading at $5.20/bbl compared to a high of $5.25/bbl last week.
• The strength in the near term spreads reflects the market sentiment for tighter supply this quarter amid ongoing OPEC+ production cuts and with an expectation of improved summer demand despite disappointing data so far this year.
  • Brent SEP 24 up 1.2% at 85.99$/bbl
  • WTI AUG 24 up 1.2% at 82.5$/bbl
  • Brent SEP 24-OCT 24 down 0.01$/bbl at 0.8$/bbl
  • Brent DEC 24-DEC 25 up 0.23$/bbl at 5.21$/bbl
  • WTI AUG 24-SEP 24 unchanged at 0.9$/bbl
  • WTI DEC 24-DEC 25 up 0.22$/bbl at 5.59$/bbl