Oil End-Day Summary: Crude Rises on CPI, US Dollar

Crude prices traded above $80/bbl for the first time since May today before easing back as the updated US CPI data and a weaker US Dollar weighed against an unexpected large build in weekly US crude inventories.

• Brent SEP 23 up 0.7% at 79.94$/bbl
• WTI AUG 23 up 1.1% at 75.63$/bbl
• The EIA weekly oil report showed a crude stock build of 5,946mn tons, compared to an estimated draw of 108mn tons.
• US CPI data: Unrounded % M/M (SA) Headline 0.18%; Core 0.158% (from 0.436%), Unrounded % M/M (NSA) Headline 2.969%; Core 4.829% (from 5.33%),
• API weekly stock data showed a build in crude and oil products. ARA crude inventories fell 1.9mn bbl in the week ending 7 July to 57.2mn barrels, Genscape data showed.
• Russian Urals crude prices rose to $59.98/bbl at the Black Sea port of Novorossiysk, just below the $60/bbl G7 price cap.
• Turkey’s President Erdogan said today oil flows between Iraq and Turkey have not yet resumed because of issues between Baghdad and the Kurdish administration.
• Diesel crack spreads fell back from earlier gains with a big build in distillate stocks of 4,815mn tons due to a drop in implied demand. Gasoline cracks have rallied with inventories staying low while the implied demand pulled back in line with OPIS and GasBuddy indications.
• Chinese diesel exports in July so far have surged on low seasonal domestic demand and good margins.
• US gasoline crack up 0.7$/bbl at 35.85$/bbl
• US ULSD crack down 0$/bbl at 33.44$/bbl
• The latest MNI Commodity Analysis on China and MNI Commodity Weekly:
• https://enews.marketnews.com/ct/x/pjJscFTelLoI6ahjKksjHw~k1zZ8KXr-kA8x6iTDJXyptIPjO1OcQ
• https://roar-assets-auto.rbl.ms/files/54586/MNI%20Commodity%20Weekly%20-%20Saudi%20and%20Russian%20Cut%20Efforts%20Driving%20Sour%20Grades.pdf