- Oil trades higher as the market weighs demand concerns against the Saudi cut
- July ’23 WTI gained 84c this morning to trade around $72.57/Bbl
- Equities trade higher while the U.S. dollar weakened relative to its recent highs
- China posted strong crude imports for May while exports fell 7.5% Y-o-Y amid sluggish domestic demand, raising economic growth concerns
- EIA, in its June STEO report, adjusted 2024 crude production forecasts downward, reflecting the extension of OPEC's cuts into 2024
- The EIA anticipates weakened U.S. crude demand due to lower distillate fuel consumption, tied to slower projected GDP growth
- The agency revised its economic growth forecast to 1.3% this year and 1% in 2024, down from earlier estimates of 1.6% and 1.8%
- OPEC members question Russia's compliance with production cuts (Bloomberg)
- Russia's seaborne shipments have increased again, with the four-week average rising to 3.73 MMBbl/d as of June 4
- Saudi Arabia's Energy Minister stressed the need for Russia to reinstate its oil-output data amid growing skepticism from OPEC members about Moscow's commitment to agreed production cuts
- Russia is now working with secondary OPEC sources to revise its February production figures, the baseline for cuts. The current assessment stands at 9.83 MMBbl/d