- Oil trades lower following its biggest weekly gain since April
- August ’23 WTI lost 72c this morning to trade around $73.14/Bbl
- Equities trade lower while the dollar strengthened, making commodities priced in USD expensive for holders of other currencies
- Despite June’s lower-than-expected job growth in the US, steady wage growth and reduced unemployment could likely keep the Fed on track for future rate hikes
- Additionally, China's factory gate prices fell at their fastest pace in more than seven years in June, declining 5.4% from a year earlier
- However, Saudi Arabia and Russia’s extended production cuts through August support prices
- The market will be closely watching the US CPI report for June on Wednesday and OPEC and IEA’s monthly reports on Thursday
- US to buy more oil to fill emergency reserves (BBG)
- The Biden administration announced on Fridays that it will purchase 6 MMBbl of crude oil for the SPR
- The purchases are scheduled for October and November and will bring the total amount of oil purchased by the administration to 12 MMBbl this year
- Pemex oil platform explosion impacts a third of daily output (BBG)
- A platform explosion at Pemex's Cantarell field on Friday killed two people and also caused production losses of about 0.7 MMBbl/d
- Pemex has had a number of accidents in recent years; most of Mexico's crude production (1.6 MMBbl/d) comes from the Gulf of Mexico