Oil Mid-Day Summary: Crude Trades Higher, Diesel Spreads Up On Supply Constraints

Crude front month has resumed the weekly gains on Friday on a reduction in crude supplies and another decline in US inventories. The near-term crude option call-put skew is extending the trend higher up to the least bearish since early March while the Brent futures 1^st-2^nd month spread is the highest since early May.

• Saudi Aramco yesterday raised OSPs to Asia and Europe for August after the country extended its 1mbpd production cut to August.
• Brent SEP 23 up 0.4% at 76.82$/bbl
• WTI AUG 23 up 0.4% at 72.1$/bbl
• Brent SEP 23-OCT 23 up 0.02$/bbl at 0.32$/bbl
• Pipeline damages on Iraq-Turkey export pipeline to the port of Ceyhan are likely the cause for the continued halt in flows, Iraq’s oil minister said.
• Kazakhstans’s crude production has been recovering after a power outage earlier this week constrained supply.
• Equinor’s Oseberg East platform has paused production since Thursday afternoon on staff shortages.
• Near term diesel time spreads and cracks received some support today from supply constraints in Germany. OMV halted deliveries of diesel and heating oil from its Burghausen refinery in addition to supply interruptions of its Munich storage site reported on Wednesday.
• Gasoil JUL 23 up 2.3% at 737.25$/mt
• Gasoil JUL 23-AUG 23 up 1.5$/mt at 14.75$/mt
• US gasoline crack up 0.1$/bbl at 35.3$/bbl