Oil Mid-Day Summary: Crude Edges Higher On Further China Policy Support

Crude prices edged higher today on reports China could extend support for particularly the property segment of the economy.

• Brent SEP 23 up 0.4% at 78.02$/bbl
• WTI AUG 23 up 0.5% at 73.35$/bbl
• Gasoil JUL 23 down -0.5% at 751.25$/mt
• The Brent Sep-Oct spread has pulled back from a peak of 0.41$/bbl late on 7 July back to 0.29$/bbl.
• US CPI data are due to be released tomorrow with the Fed on track to raise interest rates at the upcoming July meeting.
• Saudi Aramco plans to supply full nominated volumes of crude in August to North Asia, following the extended output cut and OSP hike. China requested once again less supply. Two major European refiners requested less volumes.
• Kazakh oil output is gradually returning. Operations at the KazTransOil oil pumping station in Atyrau and Mangistau regions have been fully restored.
• Russian Urals crude prices rose up to $57.70/bbl as of Friday, just below the G7 price cap.
• Diesel and gasoline crack spreads are holding steady this morning with diesel spreads slowly gaining ground over the last week amid supply disruptions in Europe. US Gulf Coast diesel exports to Europe so far this month on track to hit the highest monthly rate since at least 2017. Russian refinery processing rates are recovering in early July to highest since early April.
• US gasoline demand for the week ending July 8 fell 8.4% WoW, and 5.1% below the four-week average.
• Gasoil JUL 23-AUG 23 up 0.25$/mt at 12.5$/mt
• US gasoline crack up 0.3$/bbl at 35.31$/bbl