- Oil snaps a three-day rally, erasing all the gains following Saudi Arabia’s surprise production cut
- July ’23 WTI lost $1.43 this morning to trade around $70.70/Bbl
- Equities trade lower while the U.S. dollar strengthens, making dollar-denominated commodities expensive for holders of other currencies
- WTI and Brent hit highs of $75.06/Bbl and $78.73/Bbl yesterday following Saudi Arabia's decision to cut its production by 1 MMBbl/d for July before losing some gains to finish up by $0.41/Bbl and $0.58/Bbl
- Saudi Arabia raised all crude oil prices in July following its unilateral output cut (Bloomberg)
- Saudi Aramco increased prices for all its crude grades by $0.45 to Asia, $0.90 to the U.S. and Northwest Europe, and $0.60 to the Mediterranean region
- This decision aligns with plans to reduce crude exports in July and lower Saudi production to its least in several years
- Trans Mountain Pipeline Seeks Regulatory Approval for Tolls on Expanded Segment (Reuters)
- The Canadian government-owned Trans Mountain Pipeline requested the Canada Energy Regulator's approval for an $11-$12 CAD/bbl toll on its expanded segment to Burnaby, British Columbia
- The expansion, Trans Mountain Expansion (TMX), will transport 0.59 MMBbl/d from Alberta's oil sands
- The proposed toll rate is dependent on the type of crude and its final destination. The approval is sought for September 14th, 2023