Oil Summary at European Close: Crude Rebounds

Crude prices have rebounded to recoup most earlier losses after comments from Fed chair Jerome Powell said that US labour market appears back in balance, boosting optimism for interest rate cuts. Prices had been falling on the day amid easing concerns of disruption in the USGC due to Hurricane Beryl.

• Brent SEP 24 down 0.6% at 85.27$/bbl
• WTI AUG 24 down 0.5% at 81.92$/bbl
• Some areas of energy infrastructure took preventive measures ahead of Beryl’s arrival while unplanned shutdowns were fairly limited.
• Shipping channels and refining infrastructure closed for Beryl have either reopened or are expected shortly.
• Pilots that assist vessels navigating the Calcasieu ship channel around Lake Charles, Louisiana, are resuming service July 9 as Hurricane Beryl weakens, Bloomberg said, citing Moran shipping.
• Europe 16 nations oil inventories fell by 11mb m/m to 1,005mb in June (May revised down by 4mb)
• Russia’s weekly crude exports plummeted in the seven days to July 7, the biggest fall since the invasion of Ukraine in Feb. 2022, Bloomberg said.
• Russian produced moved closer to meeting OPEC+ targets in June according to Bloomberg Energy Ministry sources.
• Saudi crude oil exports to China will jump higher in August to at least 44 million barrels due to recent price cuts according to Reuters sources.
• Canda’s Cenovus Energy said on Monday it was demobilizing further staff at its Sunrise oil sands project in northern Alberta as a precaution due to an evolving wildfire situation.
• A more severe Atlantic hurricane season than normal poses more upside for refining margins rather than oil according to a Goldman Sachs research note.