Oil Summary at European Close: Crude Lowest Since Feb

Crude markets are continuing yesterday’s decline to be at their lowest since early February, as the market assesses the impact of the return of some OPEC supply from October.

• Brent AUG 24 down 1% at 77.61$/bbl
• WTI JUL 24 down 1.1% at 73.44$/bbl
• Wires carrying comments from a Qatari spokesperson stating that Doha is waiting for a "clear Israeli position" on the US proposal for a three-phase ceasefire in Gaza.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• OPEC oil output rose in May, according to a Reuters survey, driven by higher exports from Nigeria and Iraq which offset voluntary cuts.
• Russia’s four-week average crude exports in the period to June 2 declined for a fourth consecutive week, according to Bloomberg, with shipments hitting a three and a half month low.
• The discount for Western Canada Select (WCS) heavy crude vs WTI widened on Monday.
• The US DOE yesterday announced contracts for the purchase of 3mbbl of crude oil for the Strategic Petroleum Reserve for November delivery.
• Nigerian crude loadings for July have been relatively slow so far according to Reuters sources as an overhang of June cargoes weigh on prices.
• Nigeria is scheduled to load 190k b/d of Bonny Light crude in July, the highest since March, according to Bloomberg.
• The Chevron led Tengizchevroil will undertake further maintenance at its Tengiz oilfield in August, it said on Monday.
• Iraq’s crude exports rose for a second month in May, despite pledges to compensate for overproduction beyond its OPEC+ targets, according to Bloomberg.