Oil End-Day Summary: Crude Reverses Some Losses Post EIA

Crude prices fell to an intraday low of $75.03/bbl following the release of US PMI data, but reversed some of the earlier losses after a drop in crude stocks roughly in line with expectations while crack spreads are edging higher with a drop in gasoline and distillates stocks.

• US crude oil stocks declined by 1.5mn barrels last week. Gasoline stocks declined by 2.5mn barrels and distillates stocks fell by 1mn barrels.
• API data last night showed another crude draw of 4.4mn bbl, while product stocks increased.
• Brent SEP 23 down -1.4% at 75.55$/bbl
• WTI AUG 23 down -1.4% at 70.79$/bbl
• US gasoline crack up 0.3$/bbl at 34.29$/bbl
• OPEC is holding its 8^th International Seminar in Vienna on 5-6 July. Several headlines came from the sidelines of the event. OPEC forecasts for 2024 oil demand growth to be lower than this year of 2.35mbpd. OPEC chief Al Ghais said OPEC’s market share is expected to rise to 40%, from 30%, by 2040. OPEC had conversations with four nations to potentially join the group.
• Iran’s total oil output is currently 3.8mbpd, of which 3.07mbpd is crude. Crude and condensate exports reached 1.3mbpd in June, down by 200kbpd on the month.
• KIPIC announced the operation of the third and final unit at Kuwait’s Al-Zour refinery, which was officially scheduled to start in late-summer.
• People familiar with the matter said Russia does not plan to deepen crude production to fulfill its pledge to reduce its August crude exports.