- WTI is up 10c to $39.37/Bbl, and Brent is up 6c to $41.33/Bbl
- Oil futures in New York briefly rose above $40/Bbl on Wednesday morning after an industry report indicated the first drop in U.S. crude stocks since May
- Data from the American Petroleum Institute (API) signaled inventories shrank by 8.16 MMBbl last week
- That would be the largest draw this year if confirmed by the Energy Information Agency later this morning
- EIA weekly data is due at 9:30 AM CST
- U.S. Crude Inventories: + 289 MBbls (Avg. Bloomberg surveys)
- U.S. Gasoline Inventories: – 1,272 MBbls
- U.S. Distillate Inventories: + 36 MBbls
- U.S. Refinery Utilization: + 0.35% change
- Natural gas is down 8.6c to $1.665/MMBtu
- The European weather model continues to creep hotter with a forecast of 213 population-weighted Cooling Degree Days (CDDs) for the first half of July, compared to 209 CDDs yesterday, firmly planting the start of this July as the hottest on record
- The Commodity Weather Group’s full month forecast for July is currently at 386 CDDs, but could shoot higher into the 390s if the heat persists
- For reference, the ten-year normal is 376 CDDs for the month of July and the 30-year normal is 338 CDDs
- The US-Mexico-Canada (USMCA) trade agreement goes into effect today, July 1
- This agreement will benefit the US by opening up Mexico’s energy industry to more investment into gas pipeline capacity, oil production, and power generation
- The rules go into effect on July 1, but they are subject to revision after a 60-day comment period
