Oil Summary at European Close: Crude Rangebound

Crude markets initially rallied before pulling back after an unexpected draw in US crude inventories reported in the updated EIA weekly petroleum data although only slightly larger than reported by the API yesterday.

• Brent SEP 24 down 0% at 86.22$/bbl
• WTI AUG 24 down 0.1% at 82.73$/bbl
• The near-term crude options skews have turned slightly more bearish again after briefly touching into positive territory earlier this week.
• EIA Weekly US Petroleum Summary - w/w change week ending Jun 28: Crude stocks -12,157 vs Exp -411, Crude production 0, SPR stocks +398, Cushing stocks +345
• ARA crude storage fell 759k bbls or 1.4% in the week ended June 28 to 54.1mn bbls according to Genscape figures.
• The Biden administration remains open to dialogue with the Venezuelan government according to U.S. officials.
• Kazakhstan was still exceeding its OPEC+ quota in June with oil and gas condensate production up 4% m/m on a daily basis to 7.24m metric tons, according to Reuters sources.
• Hurricane impacts for the U.S. are potentially more bearish for oil markets nowadays because they risk refinery shut ins according to RBC’s Head of Commodity Research Helima Croft in a CNBC interview.
• Ratcheting tensions between Israel and Lebanon risk escalating the Middle East conflict by drawing Iran into direct confrontation according to RBC
• Upgrades to the Abu Dhabi Ruwais refining complex have enabled Adnoc to export record volumes of Murban crude this year according to MEES analysis.
• MNI COMMODITY WEEKLY – Beryl Sets Tone for Hyperactive Hurricane Season: https://enews.marketnews.com/ct/x/pjJscVCOlr0I6a5lJkt2HQ~k1zZ8KXr-kA8x6mXXJf1ptIPjO1OcQ