Oil End of Day Summary: Crude Ticks Up

Crude has rebounded to be slightly higher as US close nears. The previous large US stock draw remains supportive, although poorer global economic indicators are capping gains.

• WTI AUG 24 up 0.2% at 84.07$/bbl
• Beryl’s reduction to a tropical storm means we won’t see any long-term significant production outages according to Senior Energy Trader Rebecca Babin at CIBC Private Wealth.
• Saudi Aramco cut its official selling prices (OSPs) for all grades to Asia for a second consecutive month in August, indicative of a weaker demand outlook in the region.
• Russia’s Rosneft and Lukoil will make sharp cuts to crude exports out of Novorossiisk in July as refinery operations ramp up according to Reuters sources.
• U.S. crude shipments heading to Europe fell to the lowest since July 2022 at 1.45mbpd in June with European buyers sourcing cheaper regional and West African oil, according to Reuters citing Kpler data.
• Senior U.S. and Venezuelan officials resumed talks on Wednesday as Washington tries to push the Maduro regime to “competitive and inclusive” elections set for July 28.
• China’s independent refineries, mainly in Shandong province, increased their imports of Iranian crude to an eight-month high of 6.1m mt in June, according to Platts.
• Shandong teapot refiners continued to experience weak domestic demand in June according to Vortexa, limiting ESPO imports according to Vortexa.
• Increased demand and decreased supply have driven significant changes in the global crude and condensate balance, according to Kpler.
• The freight rate for Suezmax voyages loading in WAF and discharging in the UK-Continent fell to a nine-month low in $/mt terms July 3, Platts said.
• Crude storage capacity utilisation rates among Shandong Independent refineries rose 0.1 percentage points on the week to 44.3% for the seven days to July 5, OilChem said.