- Oil reverses some gains amid lackluster Chinese trade data
- June ’23 WTI lost 66c this morning to trade around $72.50/Bbl
- Equities and yields decline while the dollar strengthens today
- The market closely watches the talks between President Biden and Speaker McCarthy on the approaching debt ceiling (Reuters)
- Additionally, the market awaits the U.S. CPI print for April on Wednesday
- April's Chinese crude imports fell by 16% to 10.36 MMBbl/d, hitting the lowest point since July 2022, due to refinery maintenance (BBG)
- UAE downplays the necessity for additional short-term oil output cuts (BBG)
- UAE energy minister, Suhail Al Mazrouei, downplayed the need for further OPEC+ cuts to balance supply and demand in the short-term
- Suhail Al Mazrouei told reporters, “I’m not worried about the very, very short term”
- He emphasized that a lack of investment in the coming years poses a more significant risk to supply
- Oil supertanker rates plummet by 75% following OPEC+ production cuts (BBG)
- OPEC+ supply cuts resulted in a 75% drop-in supertanker rates, from over $97,000/day on March 20 to under $24,000/day on May 5
- The reduced number of cargoes following these cuts can change the market dynamics, with lower shipping costs expected to ease the movement of long-haul arbitrage cargoes