Oil Summary at European Close: Crude Down on Week

Crude is trading higher as European close nears, although has fallen around 3% on the week. Expectations of an OPEC+ output cut extension and commitments by key overproducers to compensate in the coming months are weighing against potential Fed rate cut delays.

• Brent JUL 24 up 0.3% at 81.61$/bbl
• WTI JUL 24 up 0.5% at 77.23$/bbl
• resident Biden is expected to hold a phone call with Egyptian President el-Sisi on Friday and ask that Egypt resumes the delivery of aid trucks to Gaza through the Kerem Shalom crossing in Israel, U.S. officials said.
• Forecasters at the US National Oceanic and Atmospheric Administration are warning of an above-normal Atlantic hurricane season, with as many as 13 hurricanes - seven of which they say could become major storms.
• OPEC+ will hold their June 2 meeting online rather than in person – a day later than originally planned.
• The first cargo from the recently expanded TMX pipeline, Canada, loaded on the Dubai Angel this week.
• Mexico’s Pemex produced 1.47mn bpd of crude in April, the lowest in over 40 years according to regulator data this week.
• Colombia is aiming to produce 1m b/d of oil by increasing drilling activity in underutilised exploratory blocks, the government’s energy authority said, cited by Bloomberg.
• China’s onshore crude inventories increased by 33mb over four consecutive weeks ending May 19, reaching 942mn bbls according to Vortexa.
• Urals crude loading from Russia’s two Baltic ports are set to fall to 6.4m mt, or 1.51m b/d in May, according to Bloomberg.
• Pipeline operators in Poland have found a solution with Russia to keep Kazakh flows to Germany operational on the Druzhba pipeline Reuters sources said.