Oil End of Day Summary: Crude Finds Late Support

Crude markets have found support during US hours, despite an unexpected crude stock build in the latest EIA data. WTI is likely readjusting after steep losses yesterday.

• WTI JUL 24 up 0.9% at 73.94$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 31: Crude stocks +1,233 vs Exp -1,909, Crude production 0, SPR stocks +898, Cushing stocks +854
• The U.S. may speed up its SPR refill as maintenance on the stockpile is completed by the end of the year, Energy Secretary Jennifer Granholm told Reuters on Tuesday.
• Saudi Aramco cut its OSP for Arab Light to Asia by 50 cents/b to a $2.40/b premium over Oman/Dubai average, the first cut in five months.
• Western Canada Select (WCS) for July delivery in Hardisty, Alberta, traded at $13.35/bbl below WTI on Tuesday, according to brokerage CalRock, having settled at $12.50/bbl under the benchmark on Monday.
• Canadian heavy crude discounts to WTI have narrowed in Vancouver following the startup of the expanded 890k b/d Trans Mountain pipeline, traders told Bloomberg.
• Oil sellers this week have got it wrong after the latest OPEC+ meeting according to Wayne Gordon of UBS Global Wealth Management in a CNBC interview.
• Libya set its Es Sider OSP for June at a discount of $1.25/b to Dated Brent, according to Bloomberg, citing a price list.
• Libya will export 31.4m bbl, or 1.05m b/d of crude in June, according to Bloomberg.
• UKMTO received a report of an incident in the Red Sea 50nm southwest of Al Shuqaiq, Saudi Arabia.
• Crude tanker freight rates could garner support from non-OPEC+ production during the summer and into Q4 from the planned easing of OPEC+ cuts, according to Platts.
• MNI COMMODITY WEEKLY: (Oil & Oil Products): here