Oil & Gas Prices - July 6

[dan_s]

WTI seems to be holding over $40/bbl this morning.

Last weeks news:

On June 29 Platts reported that Japan's demand for gasoline and diesel has recovered faster than expected following the lifting of the state of emergency restrictions, but refiners may not be able to ramp up refinery run rates to meet demand in July mainly due to the slow revival in jet fuel demand. This means that Japan will look overseas to bring in cargoes to plug any shortfall arising from the low refinery runs at home.

On June 29 Reuters reported Libya's National Oil Corporation (NOC) said on Monday there had been international talks to end a blockade on oil exports, imposed since January by eastern-based forces in the country's civil war, and that it was hopeful output would resume. The negotiations involved the internationally recognized Government of National Accord (GNA), the United Nations, the United States and regional countries, an NOC spokesman said in a statement said.

On July 1 Reuters reported Iraq will reduce crude oil exports from its southern terminals in July, mainly its Basra Light flows, in order to comply with OPEC+ cuts after failing to meet its agreed quota in previous months, loading schedules from a shipping agent showed. Planned exports of Basra Light and Heavy crude oil will be around 1.53 million b/d in July, down from the 3.1 million b/d originally planned in June. Under the OPEC+ deal, Iraq is obliged to compensate for its over-production in May and June in later months.

On July 1 Reuters reported tens of millions of barrels of crude and oil products stored on tankers at sea due to the coronavirus crisis are being sold, in a sign fuel demand is recovering as lock downs ease, shipping sources say. Fuel demand tumbled as much 30% from March to May, with some surplus stored at sea as land storage filled up. Crude held on tankers fell below 150 million barrels by the end of June, down from more than 180 million barrels in late April, IHS Markit estimated.

On July 1 Bloomberg reported that Kuwaiti crude exports fell by 16% in June vs. May levels to 1.64 million b/d, according to tanker tracker data.

On July 1 Bloomberg reported that Algerian crude and condensate exports fell by 13% in June vs. May levels to 412,000 b/d, according to tanker tracker data.

On July 1 Bloomberg reported that total observed shipments of Iranian crude and condensate were 133,000 b/d in June compared with a revised 293,000 b/d in May, according to tanker-tracking data.

On July 2 Platts reported that the volume of jet fuel physical trades concluded during the Platts Market on Close assessment process in Singapore rose by more than threefold, or 266%, to a five-month high of 1.795 MMBbls in June from 490,000 barrels in May, according to S&P Global Platts data. The sudden rise in the volume of jet fuel traded was attributed to the gradual resumption of domestic and international flights, which increased jet fuel procurement and lifted overall market sentiment.