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Oil Summary at European Close: Crude Lower

OIL

Crude is trading lower today as markets take stock of possible US rate cuts and weaker Chinese economic data.

  • Brent SEP 24 down 0.8% at 81.99$/bbl
  • WTI AUG 24 down 0.7% at 79.57$/bbl
  • The PBoC unexpectedly cut the 7-day repo rate, 1-year & 5-year LPRs by 10bp today to support the economy after Q2 GDP disappointed and the Third Plenum meeting took place.
  • oney managers reduced net long crude positions this week with a drop in Brent offsetting a rise in WTI to the most bullish since October 2023.
  • China imports of crude oil from Russia and Saudi Arabia fell in June but shipments from Malaysia were up near record levels, according to General Administration of Customs data released over the weekend.
  • US crude production is holding at a record high of 13.3mb/d in July despite a steady decline in the number of drilling rigs.
  • A spell of record-breaking hot weather is keeping the wildfire risk across Albertas oil sands region high.
  • Hungary and Slovakia plan to raise the issues of blocked Russian Lukoil oil cargoes transiting Ukraine via the Southern Druzhba pipeline on Monday.
  • Indonesia’s Pertamina has added Russian crude grades to its September purchase tender according to Reuters sources.
  • Oil markets are currently tight but will likely be in surplus next year according to Morgan Stanley, causing Brent prices to fall into the high to mid-$70’s range.
  • OPEC exports are down this month on already weak levels in June helping to tighten markets according at a UBS note.

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