Oil End of Day Summary: Crude Eases Back

WTI is headed for US close trading lower, with pressure from a stronger US dollar on the day. However, crude remains in the three-day trading range and expectations of a tighter balance over the summer is supportive.

• WTI AUG 24 down 0.7% at 81.03$/bbl
• The OPEC production cut extension into Q3 and a potential summer boost to fuel demand are supporting prices despite the disappointing early summer demand data.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• Exxon Mobil took the first step towards its seventh oil project in Guyana as it looks to further expand output from the South American nation, according to Bloomberg.
• Brazil’s oil production has started to recovery following a fall earlier in the year when many offshore plants underwent repairs and maintenance, according to OilPrice.com
• North Sea tightening is leading to a substantial deterioration in arbs out of the region: Sparta Commodities.
• Russia’s weekly crude exports fell the most in over three months during the seven days to June 23: Bloomberg.
• Oil loadings from Russia’s western ports are expected to fall 23% m/m in July to 1.5mbpd.
• Chinese refiner Rongsheng Petrochemical has bought two 550,000 bbl Canadian Access Western Blend crude cargoes via the recently expanded TMX for September.
• India’s state-owned refineries are in talks with Russia to secure term deals for crude supplies following similar discussions with private refiner Reliance.
• The recent depreciation of the Mexican peso following the presidential election has elevated the price of imports for oil and natural gas from the US.
• Sanctions on shipping companies are undermining safety at sea and pose dangers for trade as ship standards are impacted, Sovcomflot’s CEO Igor Tonkovidov said, cited by Reuters.