Oil Summary at European Close: Crude Finds Its Feet

Crude futures have climbed today on continued hopes of more bullish sentiment during the summer. The market is also keeping an eye on the Atlantic hurricane season, which could impact supply.

• Brent SEP 24 up 1.4% at 86.16$/bbl
• WTI AUG 24 up 1.5% at 82.73$/bbl
• Final US June Manufacturing PMI 51.6 (51.7 flash, 51.3 May)
• The ISM manufacturing was modestly softer than expected in June at 48.5 (cons 49.1) for little change from 48.7 in May.
• Hurricane Beryl has formed in the Atlantic and is headed towards the Caribbean’s Windward Islands.
• Saudi Aramco may cut prices for its Arab Light crude sold to Asia again in August following the first cut in five months in July, according to a Bloomberg survey.
• Around 20 vessels loaded from the recently opened Trans Mountain Pipeline expansion in its first month in service according to Kpler.
• China’s Rongsheng has bought three Canada Access Western Blend cargoes via the TMX pipeline for September arrival according to Bloomberg sources.
• Crude imports to Asia ticked lower year on year in the first half of 2024 despite expectations for the region to lead global demand growth according to Reuters.
• “Declining US production in Q4 and a slow-walk back of returning OPEC+ supply” will support Brent prices although summer upside is limited by fuel demand, according to Rabobank.
• Floating crude, stationary for at least 7 days, fell to 73.29m bbl as of June 28, down 24% from 96.40m bbl on June 21 according to Vortexa.
• Oil exports from Saudi Arabia slumped in June to a 10-month low as the Kingdom keeps a lid on supply and domestic crude demand rises, Bloomberg said.