Oil Summary at European Close: Crude Rangebound

Crude has rebounded to near rangebound as European close nears. Yesterday’s large US crude inventory draw remains supportive.

• Brent SEP 24 up 0.1% at 87.4$/bbl
• WTI AUG 24 down 0% at 83.85$/bbl
• Beryl’s reduction to a tropical storm means we won’t see any long-term significant production outages according to Senior Energy Trader Rebecca Babin at CIBC Private Wealth.
• Saudi Aramco cut its official selling prices (OSPs) for all grades to Asia for a second consecutive month in August, indicative of a weaker demand outlook in the region.
• U.S. crude shipments heading to Europe fell to the lowest since July 2022 at 1.45mbpd in June with European buyers sourcing cheaper regional and West African oil, according to Reuters citing Kpler data.
• Senior U.S. and Venezuelan officials resumed talks on Wednesday as Washington tries to push the Maduro regime to “competitive and inclusive” elections set for July 28.
• China’s independent refineries, mainly in Shandong province, increased their imports of Iranian crude to an eight-month high of 6.1m mt in June, according to Platts.
• Shandong teapot refiners continued to experience weak domestic demand in June according to Vortexa, limiting ESPO imports according to Vortexa.
• Increased demand and decreased supply have driven significant changes in the global crude and condensate balance, according to Kpler.
• The freight rate for Suezmax voyages loading in WAF and discharging in the UK-Continent fell to a nine-month low in $/mt terms July 3, Platts said.