Oil Summary at European Close: Stock Build Slashes Crude Gains

Crude futures have reversed most of the earlier gains after an unexpected build in US crude stocks. A sharp fall in the USD amid softer CPI data has bolstered crude earlier in the day.

• Brent AUG 24 up 0.3% at 82.18$/bbl
• WTI JUL 24 up 0.2% at 78.08$/bbl
• May Core CPI 0.163% M/M (0.3% expected median, 0.28% expected unrounded, 0.3% prior)
• The UKMTO has received a report of an incident in the Red Sea 66nm southwest of Al Hudaydah, Yemen.
• The IEA trimmed its 2024 oil demand growth forecast to just under 1 million bpd, citing sluggish consumption in China, US and Europe, the numbers suggest it agrees with OPEC and the EIA that there will be stock draws in the second half of the year.
• EIA Weekly US Petroleum Summary - w/w change week ending Jun 07: Crude stocks +3,730 vs Exp -886, Crude production +100, SPR stocks +339, Cushing stocks -1,593
• Resumption of Kurdish Iraqi flows via Ceyhan are struggling to progress according to Argus sources.
• ARA crude inventories fell by 4.4mn bbls or 7.3% in the week ended June 7 to 56.3mn bbls according to Genscape.
• Iraq's oil ministry said on Wednesday it is fully committed to compensating for any overproduction in 2024, referencing estimates by secondary sources of overproduction of 203,000 barrels for the month of May.
• US crude has dominated global benchmark oil pricing in the year since WTI’s inclusion in the Dated Brent benchmark, Reuters said.
• Brent crude prices could fall to $60/bbl in 2025 amid plentiful supplies, according to Citigroup cited by Bloomberg.