Micro WTI futures are now trading on NYMEX. These contracts are in 100 barrel increments. The symbol is MCL. Please let us know if you have any questions or interest in trading the Micro WTI.
Outlook: Saudi Arabia and the UAE have apparently agreed to a compromise. But we don’t know if the rest of OPEC+ will be on board. So far this uncertainty is causing some nerves and we are looking at losses currently. The weekly petroleum status report from the EIA is set for 9:30 am CDT.
Crude
- Saudi Arabia and the UAE have reached a compromise over OPEC+ production policy, an OPEC+ source said, according to a Reuters report. The source said Saudi Arabia agreed to UAE’s request to have their baseline production levels reset to 3.65 million bpd from 3.168 million bpd. This should then allow for an extension of the agreement from April 2022 to December 22. The rest of OPEC+ will have to meet to agree and there is currently not an immediate date set before the next scheduled meeting in early August.
- Yesterday afternoon the API predicted that last week US crude oil inventories fell 4.1 million barrels and Cushing stocks fell 1.6 million barrels. A Genscape report earlier this week suggests Cushing, OK stocks fell 1.6 million barrels. A Reuters poll suggests we could see the EIA report a 4.4 million barrel crude draw.
- The Producer Price Index was 7.3% y/y in June, above 6.8% estimated.
- A 180,000 bpd refinery in Durban, South Africa was forced to shut and declare force majeure due to widespread protests in the region that are disrupting supply routes. The SAPREF refinery is a 50-50 joint venture of Shell Refining SA and BP Southern Africa.
- As of 9:06 am CDT: September Brent is down 31 cents to $76.18, the U.S. dollar index is 0.345 lower at 92.402 while the nearby e-mini S&P 500 futures contract is up 16.50 points at 4,377.75.
Diesel
- Yesterday afternoon the API predicted that last week US distillate inventories rose 3.7 million barrels. A Reuters poll suggests today we could see the EIA report an 877,000 barrel build.
Gasoline
- Yesterday afternoon the API predicted that last week US gasoline inventories fell 1.5 million barrels. A Reuters poll suggests today the EIA may report a 1.8 million barrel draw.
Propane
- An OPIS poll suggests today the EIA may report a 1.4 million barrel build in US propane stocks. There were 16 responses that ranged from unchanged to a 2.3 million barrel build.
