Oil Steady as G7 Discuss Energy Cap

Oil remains steady this morning as the G-7 gathers with the topic of energy on the agenda. The group are set to discuss the possibility of a price cap on Russian oil, but an agreement has yet to be reached. It is understood that the potential mechanism would impose restrictions on insurance and shipping.

• Brent AUG 22 down -0.2% at 112.93$/bbl
• WTI AUG 22 down -0.3% at 107.33$/bbl
• Gasoil JUL 22 down -0.7% at 1293$/mt
• WTI-Brent down -0.17$/bbl at -5.59$/bbl
• After falling from a peak of in the middle of June crude prices have fallen on the possibility of a reduction in oil demand growth due to increasing economic risks. This downside pressure is being balance against the upside supply risks. Global oil inventories remain tight with uncertainty over supply of both crude and refined products. Few nations have any spare crude production capacity and refineries are struggling to keep up with demand after years of underinvestment in infrastructure. Refined product markets have maintained strength more than crude in recent weeks with crack spreads still trading near to record levels.
• The tight supply is keeping oil curves steeply backwardated with front time spreads rallying sharply last week. Spreads are maintaining last week’s levels so far this morning.
• US 321 crack down -0.5$/bbl at 57.38$/bbl
• Brent AUG 22-SEP 22 up 0.06$/bbl at 4.08$/bbl
• Brent DEC 22-DEC 23 down -0.14$/bbl at 11.87$/bbl