Oil End of Day Summary: Crude Erases Friday’s Losses

Crude has found further support today, reversing Friday’s losses. Expectations of rising product demand during the summer travel season and a weaker USD on the day have been supportive.

• WTI AUG 24 up 1.2% at 81.68$/bbl
• The EU imposed sanctions on 27 ships, including 17 that have been transporting oil on behalf of Moscow, Bloomberg reported.
• National Iranian Oil reduced the OSP of Iranian Light crude to a $2.60/bbl premium to the Oman-Dubai average for July sales to Asia, according to pricing seen by Bloomberg.
• Floating crude on tankers stationary for at least seven days rose 12% to 92.9m bbl as of June 21 from 82.62m bbl on June 14 according to Vortexa data cited by Bloomberg.
• Around 10- 15 vessels carrying Russian-origin oil have been waiting at Malta STS every day in the past 1.5months, compared to a minimal number the same period last year, according to Vortexa.
• Crude inventories were seen falling by 3m bbl in the week to June 21. Estimates ranged from -4m bbl to -2m bbl, according to a Reuters survey.
• US West Coast refiners are replacing Iraqi oil imports with Canadian crude as the newly expanded Trans Mountain pipeline reshuffled trades flows in the Pacific, Bloomberg said.
• Nigerian oil sales have picked up and at higher prices, but a large overhang of unsold July loading cargoes remains, Reuters said.
• The oil market could hit a supply shortage as peak demand is still a decade away, according to Golman Sachs.
• Oil Prices may be stronger than earlier projected in Q3 amid higher-than-expected refining and power generation demand, Macquarie said.