Oil Summary at European Close: Crude Rises

Crude markets are holding onto earlier gains after a larger than expected draw in US crude inventories according to the update EIA weekly petroleum data.

• Brent SEP 24 up 1.4% at 84.9$/bbl
• WTI AUG 24 up 2.1% at 82.49$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jul 12, Crude stocks -4,870 vs Exp -736, Crude production 0, SPR stocks +650, Cushing stocks -875
• Oil demand in JODI-reporting countries rose by 0.81mb/d m/m in May but was down 1.5% (1mb/d) y/y. Crude oil production fell by 586kb/d m/m and was down 0.78mb/d vs May 2023.
• A wildfire is within 10km of Canadian Natural’s Kirby oil sands, according to data from Alberta Wildfire and Alberta Energy Regulator cited by Bloomberg.
• North Dakota oil production was down 49,000 bpd in May vs April at 1,195,000 bpd – according to the state regulator – its lowest since January.
• Mexico cannot afford to neglect the exploitation of unconventional hydrocarbon resources, often extracted via fracking, experts opined at an energy forum held at the Mexican senate, Platt said.
• QatarEnergy has raised the September term price for Al-Shaeen crude to $1.88/bbl above Dubai quotes according to Reuters sources.
• India increased Russian ESPO crude purchases for June and July arrival as China bought less according to LSEG data.
• Asian importers are hoping for some normalcy to oil trade flows from Iran as the country’s new president pushes for a thaw in Tehran’s relations with the West, Platts said.
• We estimate the equilibrium price of WTI oil at around $70/bbl,” JP Morgan said in a report cited by Bloomberg.