Oil Summary at European Close: Crude Lowest Since June 10

Crude is extending losses to hit its lowest intraday level since June 10. Continued ceasefire talks between Israel and Hamas, coupled with demand concerns are offsetting potential supply risks from Canadian wildfires.

• Brent SEP 24 down 1.9% at 80.81$/bbl
• WTI SEP 24 down 2.2% at 76.65$/bbl
• Norwegian oil and gas output rose in June, beating forecasts according to the Norwegian Offshore Directorate on Tuesday.
• Russian crude exports have slipped further to a seven-month low according to Bloomberg.
• Russia’s crude production in July is slightly above its target as part of the OPEC+ voluntary cut agreement but the country will compensate according to Deputy PM Alexander Novak.
• Russia’s Lukoil has not resumed oil transit to Hungary or Slovakia according to Russian officials.
• Black Sea CPC Blend oil exports via the CPC pipeline system in August are expected to fall 9.3% m/m on a daily basis, according to Reuters.
• National Iranian Oil set the OSP of Iranian Light crude at a $2.10/bbl premium to Oman-Dubai average for August sales to Asia.
• Maintenance is planned at Kazakhstan’s major Kashagan field in October which may last for around 45 days according to the Ministry of Energy speaking with Interfax.
• Nigeria is set to increase its loadings of Bonny Light crude in September to the highest in over four years, Bloomberg said citing a loading programme.
• Canada’s oil production has remained largely stable, but the risk that wildfires pose to the industry is growing, Goldman Sachs said July 23.
• The geopolitical risk premium is currently near zero despite rising tensions between Israel and Yemen and Biden’s exit from the election race, Goldman Sachs said.