Oil Summary at European Close: Crude Falling on Week

Crude markets are down on the day and are ending the week around 2.4% lower. Crude erased initial gains on the day, and despite a short-term recovery, fell again during the European afternoon. A strengthening in the US dollar amid stronger US payrolls data has been adding pressure today.

• Brent AUG 24 down 0.3% at 79.63$/bbl
• WTI JUL 24 down 0.1% at 75.48$/bbl
• Global oil and gas rig count in May fell by 51 rigs on the month to 1,675, according to Baker Hughes. The rig count can be an early indicator of future output.
• Crude curve backwardation is strengthening again this week as the front month futures are regaining some ground after the initial sharp decline at the start of the week.
• The Nymex WTI to ICE Brent spread may widen in the short term amid a potential build in inventories at Cushing, according to Sparta Commodities cited by Bloomberg.
• China’s imports of Iranian crude jumped to 1.54mn bpd in May according to Kpler - a seven-month high.
• Brazil: oil production was at 3.195mbpd in April, -4.8% m/m, +1.7% y/y – ANP
• US seaborne crude exports crossed the 4mbd mark again in the month of May according to Vortexa.
• The price of North Sea Johan Sverdrup rose as European refineries seek alternatives following the increase in Aramco’s OSPs.
• Angola's July cargoes are selling faster than those for June, with 64% of July supply already traded, Bloomberg said.
• Global shale oil supply will drop by 0.4m-0.5m bbl in 2024, according to Russia’s Deputy PM Alexander Novak, cited by Bloomberg and TASS.