Oil Summary at European Close: Crude Extends Gains

Crude has found further support today, building on last week’s gains. is up today but is holding below the high of $86.24/bbl from June 21. Expectations of rising product demand during the summer travel season and a weaker USD on the day have been supportive.

• Brent AUG 24 up 0.6% at 85.79$/bbl
• WTI AUG 24 up 0.8% at 81.4$/bbl
• Concerns in US and China limit upside move as the US Fed optimism remains sluggish with plans for just one rate cut in 2024 while recent data from China has been mixed.
• The UKMTO received a report of an incident 246nm Southeast of Nishtun, Yemen.
• National Iranian Oil reduced the OSP of Iranian Light crude to a $2.60/bbl premium to the Oman-Dubai average for July sales to Asia, according to pricing seen by Bloomberg.
• Floating crude on tankers stationary for at least seven days rose 12% to 92.9m bbl as of June 21 from 82.62m bbl on June 14 according to Vortexa data cited by Bloomberg.
• Around 10- 15 vessels carrying Russian-origin oil have been waiting at Malta STS every day in the past 1.5months, compared to a minimal number the same period last year, according to Vortexa.
• US West Coast refiners are replacing Iraqi oil imports with Canadian crude as the newly expanded Trans Mountain pipeline reshuffled trades flows in the Pacific, Bloomberg said.
• Supertankers signalling China as their next destination slipped in the past week, according to Bloomberg.