Oil Summary at European Close: Crude Oscillating

Crude has oscillated between gains and losses during the European afternoon session. Crude initially jumped into gains amid lower-than-expected US PPI data, followed by Hezbollah Middle East escalations and Russian vowing to compensate for overproduction. However, a recovery in the US dollar strength has added further pressure to push front month back to rangebound.

• Brent AUG 24 up 0.1% at 82.65$/bbl
• WTI JUL 24 up 0% at 78.51$/bbl
• The US Fed yesterday held rates steady at its June FOMC meeting, signalling just one cut in 2024 and likely to weigh on demand prospects
• May PPI -0.2% M/M (0.1% expected); core PPI (ex food/energy/trade) 0% (0.3% expected)
• The Trans Mountain pipeline is running around 80% capacity, as 22 oil tankers are scheduled to load in Vancouver in June with crude from the expanded pipeline, Trans Mountain said cited by Reuters.
• Russia intends to compensate for overproduction above its OPEC+ quota through 2025 according to the energy ministry Thursday.
• Russia is changing how oil output data used to compile OPEC+ production estimates is reported, according to Bloomberg, amid greater scrutiny over production cuts.
• Russia’s President Valdimir Putin extended a special economic decree linked with preventing some foreign states from accessing Russian oil and products until December 31, according to Interfax.
• The UK announced wide ranging sanctions on Russia, including a first attempt to crack down on the shadow fleet of tankers moving Russia’s oil, according to Bloomberg