Oil Market Summary

Oil has slid back from yesterday after news emerged that Saudi is ready to cover any production shortfalls by Russia as they grapple with a swathe of international sanctions which are expected to have a longer-term output impact from the major producer.

• Brent AUG 22 down -1.8% at 114.22$/bbl

• WTI JUL 22 down -2% at 113.01$/bbl

• Gasoil JUN 22 down -1.9% at 1246$/mt

• Any announcement by Saudi to cover Russia’s shortfall is expected after today’s OPEC+ meeting. The FT has reported that the UAE could also step in – the two countries are the only OPEC members with the capacity and ability to cover any meaningful shortfall.

• Biden is likely to visit Saudi Arabia as gasoline prices soar in the US, hammering drivers as the summer driving season got under way at the end of last week for Memorial Day weekend.

• A Bloomberg survey showed OPEC output increasing by 130,000 bpd last month as increases by Middle East nations and Nigeria helped offset losses elsewhere.

• The EU ban on Russian oil negotiations with Hungary have hit another roadblock as the country makes new or already rejected demands further frustrating EU officials to come together as a unanimous group to tackle issues.

• Brent AUG 22-SEP 22 down -0.25$/bbl at 2.48$/bbl

• Brent DEC 22-DEC 23 down -1.19$/bbl at 13.59$/bbl