After falling early in the day with Brent as low as 105.88$/bbl oil bounced back above 110$/bbl towards the top of the recent range. The initial bearish move was on the back of weaker economic sentiment but supply risks and strength in oil product demand brought prices back higher.
- Brent JUL 22 down -0.6% at 111.37$/bbl
- WTI JUL 22 down -0.8% at 109.01$/bbl
- Gasoil JUN 22 up 1.5% at 1061$/mt
- WTI-Brent down -0.09$/bbl at -2.36$/bbl
- Future demand from China remains unclear as they continue to struggle with their zero covid policy. Shanghai has started to ease some lockdown restrictions as cases have fallen but more outbreaks are leading to fresh restrictions elsewhere such as Beijing.
- Oil product markets remain tight with increasing US demand expected over the summer despite the high pump prices and after an explosion at a 580kbpd S Korean refinery.
- China is seeking to increase strategic crude inventories with supplies from Russia. Discussions are reportedly taking place, but no details or agreement has yet been reached.
- Brent JUL 22-AUG 22 up 0.08$/bbl at 2.3$/bbl
- Brent DEC 22-DEC 23 down -0.08$/bbl at 12.04$/bbl