Oil End of Day Summary: Stock Build Tapers Crude Gains

WTI has regained some ground after an unexpected build in US crude stocks pushed crude to near rangebound on the day. Upside support remains from a sharp 0.4% fall in the USD index on the day, amid softer CPI data and the Fed holding rates steady.

• WTI JUL 24 up 0.8% at 78.5$/bbl
• The Fed held Rates Steady at its June FOMC meeting, signalling Just One Cut in 2024.
• May Core CPI 0.163% M/M (0.3% expected median, 0.28% expected unrounded, 0.3% prior)
• Canada could see above-average wildfire activity in June and July, as weather forecasters expect a warmer and drier summer, Reuters said.
• The IEA trimmed its 2024 oil demand growth forecast to just under 1 million bpd, citing sluggish consumption in China, US and Europe, the numbers suggest it agrees with OPEC and the EIA that there will be stock draws in the second half of the year.
• EIA Weekly US Petroleum Summary - w/w change week ending Jun 07: Crude stocks +3,730 vs Exp -886, Crude production +100, SPR stocks +339, Cushing stocks -1,593
• Resumption of Kurdish Iraqi flows via Ceyhan are struggling to progress according to Argus sources.
• ARA crude inventories fell by 4.4mn bbls or 7.3% in the week ended June 7 to 56.3mn bbls: Genscape.
• Iraq's oil ministry said on Wednesday it is fully committed to compensating for any overproduction in 2024.
• US crude has dominated global benchmark oil pricing in the year since WTI’s inclusion in the Dated Brent benchmark, Reuters said.
• Brent crude prices could fall to $60/bbl in 2025 amid plentiful supplies, according to Citigroup cited by Bloomberg.
• US production is expected to grow slowly until 2030, Energy Aspects’ Amrita Sen said at the Global Energy Show in Calgary.
• MNI COMMODITY WEEKLY: Full piece here: https://enews.marketnews.com/ct/x/pjJscQjZwroI6a5nK0ojGQ~k1zZ8KXr-kA8x6nPC8PyptIPjO1OcQ