Run of OPEC+ headlines this morning:

Saudi Arabia announced a further 1mn bpd voluntary production cut extension into August from July only previously. They have left the door open for that to be extended further still. This headline prompted the initial upward crude response this morning although was widely expected by the market.

• Shortly after, Russia’s Novak announced that Russia is to “voluntarily reduce its oil supply in the month of August by 500,000 bpd by cutting its exports by that quantity to global markets”. This is a change of tact, usually announcing production related cuts rather than export related.
• In the latest headlines, Novak also announced that Russia aims to reduce oil output in August by a further 500,000 bpd.
• Note that Russian refineries are coming back from maintenance allowing Russia to direct crude away from the export market and towards its domestic refiners. This also comes against domestic gasoline shortages in the country which higher runs, surging prices and export limitations should set to alleviate.
• The Russia headlines have failed to add upward crude price momentum to the Saudi headline but may be offering support. Russian headlines may be holding less sway after a seeming lack of commitment to abide by prior cut commitments.
• Brent SEP 23 up 0.9% at 76.1$/bbl
• WTI AUG 23 up 1% at 71.36$/bbl