- Oil heads for a first weekly gain in a month
- June ’23 WTI gained $1.32 this morning to trade around $73.18/Bbl
- Signals of progress in debt ceiling negotiations by President Biden and Speaker of the House McCarthy supported prices (BBG)
- McCarthy suggested that an agreement in principle may be reached over the weekend
- The market awaits comments from Fed Chair Powell for guidance on future monetary policy later today
- Furthermore, China's demand recovery is being closely monitored, although some economic data fell short of expectations
- However, refinery runs have increased in anticipation of higher demand
- Alberta's wildfires increased marginally, causing several companies to halt production and evacuate staff (BBG)
- As weather conditions are forecasted to worsen, the situation is expected to deteriorate
- UK announces new sanctions on Russia, more expected at G7 summit (Reuters)
- Today, the UK announced a new round of sanctions against Russia, focusing on companies linked to the theft of Ukrainian grain and those partaking in Russian energy exports
- These sanctions affect key Russian energy and military shipment companies
- Alongside the U.S. and other G7 countries, the UK is preparing to announce more sanctions against Russia at the upcoming G7 summit in Japan
- South Korea and Taiwan resume crude purchases amid lower freight costs (BBG)
- South Korean and Taiwanese oil refineries, after a period of inactivity, have procured at least 14 MMBbl of crude oil from the U.S., with the majority set to arrive in August
- Despite lower shipping costs spurring purchases from the U.S., Asian refining profits remain low
- These purchases provide some relief to the physical market, which has seen an over-supply of low-sulfur, light oil
- Libya's National Oil Company Aims for a Ten-Year High in Oil Production (BBG)
- Libya sets its sights on escalating oil production by roughly 8% to 1.3 MMBbl/d by December, according to Farhat Bengdara, the chairman of the Libyan NOC
- He added that $17 billion in investment spread across 45 projects would enable the NOC to lift production to 2 MMBbl/d in five years
- Despite recurrent disruptions due to political instability, oil output has stayed steady this year, suggesting the country's troubles might be easing