Prices Hold Onto Gains On Further Risks To Supply

Oil prices are down slightly during Monday’s APAC session holding onto most of Friday’s gains as tensions in the Black Sea increase the risk to Russian shipments. WTI is 0.1% lower at $82.72/oz while Brent is also -0.1% to $86.14. US yields are higher and the USD index is up slightly.

• Brent reached an intraday high of $86.73 early in trading and has been trending down since. The low was $86.12. WTI’s high was $83.30 before reaching a low of $82.71.
• According to Bloomberg, 15-20% of Russian crude shipments go through the Black Sea and most of its grain. On the weekend, a drone hit a Russian tanker.
• Later today Saudi Aramco announces Q2 earnings which may also include its outlook for the oil market. Late last week Saudi Arabia said its output cuts would be extended to the end of September and may even be deepened.
• Fed’s Bostic and Bowman speak at the Fed Listens Event later on Monday. Bank of England chief economist Pill also speaks. In terms of data, there are only US June consumer credit and German June IP. The focus of the week will be on US July CPI on Wednesday.