Oil Summary at European Close: Crude Slides

Crude is losing ground today, amid pressure from a weaker USD. However, sentiment overall remains supportive amid expectations of a tighter balance over the summer.

• Brent AUG 24 down 0.8% at 85.34$/bbl
• WTI AUG 24 down 0.7% at 81.09$/bbl
• The OPEC production cut extension into Q3 and a potential summer boost to fuel demand are supporting prices despite the disappointing early summer demand data.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• North Sea tightening is leading to a substantial deterioration in arbs out of the region, according to Sparta Commodities.
• Russia’s weekly crude exports fell the most in over three months during the seven days to June 23, according to Bloomberg.
• Oil loadings from Russia’s western ports are expected to fall 23% m/m in July to 1.5mbpd, according to Reuters sources.
• Chinese refiner Rongsheng Petrochemical has bought two 550,000 bbl Canadian Access Western Blend crude cargoes via the recently expanded TMX for September delivery according to Reuters sources.
• India’s state-owned refineries are in talks with Russia to secure term deals for crude supplies following similar discussions with private refiner Reliance.
• Mexican Oil Imports Hit by Weaker Peso
• The recent depreciation of the Mexican peso following the presidential election has elevated the price of imports for oil and natural gas from the US.