Oil Summary at European Close: Crude Extends Gains

Crude prices have built on yesterday’s gains, supported by geopolitical uncertainties, demand optimism and the early start of the hurricane season in the Atlantic.

• Brent SEP 24 up 0.4% at 86.94$/bbl
• WTI AUG 24 up 0.2% at 83.57$/bbl
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• Loadings of the 12 main North Sea oil grades in August are set to fall to 1.83mb/d, or 56.76mbbl, according to Bloomberg calculations.
• Saudi Arabia led a big drop in seaborne oil flows in June, with the world’s largest crude exporter likely diverting supply to meet rising domestic summer power demand, Bloomberg said.
• Venezuelan President Nicolas Maduro said on Monday he had accepted a proposal to restart direct talks with the U.S.
• Venezuelan oil exports were flat in June m/m at 760,000 bpd with U.S. special licenses supporting around half the volumes to head to the U.S. and Europe according to LSEG data.
• Libya plans to export 32.44m bbl, or 1.05m b/d of crude in July, according to a loading programme seen by Bloomberg.
• Iran’s Oil Minister Javad Owji said that the country’s oil output had reached 3.57mn bpd according to Tasnim reports.
• Brazilian oil production was at 3.318mbpd in May, +3.9% m/m and +3.6% y/y according to ANP figures.
• Short-term indicators in the physical crude market remain mixed despite the advance in flat price due to geopolitics, elections, expectations of supportive Q3 crude balances and the predicted active hurricane season: Sparta Commodities.
• The Russian oil industry will be completely independent from foreign equipment by 2027, Gazprom Neft CEO said.