Turning Bid; Chinese Demand On The Rise

WTI and Brent deal ~+$0.40 higher apiece at typing, operating within ~$1.00 of their respective best levels made on Friday. Both benchmarks have reversed losses near the open, with little by way of major, related headline drivers to explain the bid.

• Looking to China, a broad BBG analysis of early economic indicators has pointed to a limited improvement in China’s economy for June, centred around manufacturing and export-oriented industries.
• Keeping within China, electricity demand across the country is continuing to rise amidst an ongoing heat wave in at least 12 of the country’s 31 provinces and regions, adding to additional demand from the return of COVID-restricted industrial output.
• Top African oil producer Nigeria has pledged to meet OPEC+ production quotas by end-August, effectively representing a ~300K-500K bpd increase from current levels as per previous survey estimates and source reports.
• Ecuador has warned that the country’s ~500K bpd output (as of levels around May ‘22) is in danger of halting “in less than 48 hours” due to ongoing anti-government protests. Ecuadorian President Lasso has just announced the deployment of police and army resources to restore order, with the situation continuing to play out at typing.