US Daily Oil Summary: US Extends Licences for US Companies in Venezuela

The US has extended a license allowing certain transitions with Venezuela’s PDVSA so that US energy service companies can maintain assets after sanctions were reimposed in April, Reuters said.

• The license is extended through Nov. 15 covering Haliburton, Schlumberger, Baker Hughes, and Weatherford International.
• US Gulf Coast heavy and medium sour crude imports are set to pick up this month. 6 VLCCs en route carrying Saudi crude are behind this increase according to Vortexa.
• It helps to replace a declining trend in barrels coming from Mexico, which are instead being held for domestic refining increases (a likely longer-term trend due to Pemex production ambitions)
• Enbridge looking to sell new space on a crude pipeline to the Corpus Christi oil port in Texas could help to alleviate constrained pipeline capacity at the key export hub according to Bloomberg.
• Strong US oil exports are again weighing on physical crude prices in Europe and West Africa according to Bloomberg sources.
• USD: The Bloomberg dollar spot index is up around 0.05% on the day and around 0.18% higher on the week.
• U.Mich consumer sentiment was much weaker than expected in the preliminary May report at 67.4 (cons 76.2) after an unrevised 77.2. The press release notes the 10pt decline is "statistically significant" and leaves sentiment at the lowest in about six months
• This month's trend in sentiment is characterized by a broad consensus across consumers, with decreases across age, income, and education groups." Consumers "expressed worries that inflation, unemployment and interest rates may all be moving in an unfavourable direction in the year ahead.