CRUDE WRAP: WTI (N3) SETTLES USD 3.21 LOWER AT 69.46/BBL; BRENT (Q3) SETTLES USD 3.39 LOWER AT 73.71/BBL

Analysis details (19:32)

The crude complex saw pronounced weakness on Tuesday on concerns about whether the US Congress will pass the debt ceiling bill accompanied by mixed OPEC+ supply messages. On the latter, WSJ reported that Saudi Arabia and Russia are experiencing tensions as Russia continues to flood the market with cheap oil, undermining Saudi efforts to stabilise prices after the Saudi Energy Minister last week warned participants that are betting oil prices will fall to "watch out". Nonetheless, the dispute comes ahead of a crucial OPEC+ meeting on June 4th to decide on production plans. Meanwhile, according to Interfax, Russia Deputy PM Novak is to discuss the oil market situation with oil companies later today which followed him last week noting he does not see new steps at the meeting. Back to the day, US/UK players returned from their respective long weekends to see WTI and Brent print lows of USD 69.02/bbl and 73.32/bbl, respectively, as oil ground to session lows through the afternoon as risk sentiment soured. Looking ahead, attention will be on the aforementioned debt ceiling updates, and Chinese manufacturing/service sector data for insight on fuel demand recovery, as well as the crude-specific private inventory data (Wed), EIA's (Thurs), Baker Hughes (Fri), and concluding with OPEC+ starting on Sunday.

LOADINGS: North Sea Brent crude oil stream is to load 2 cargoes in July (prev. 2 M/M), Oseberg 3 cargoes (prev. 3 M/M), Troll 5 cargoes (prev. 6 M/M), Ekofisk 11 cargoes (prev. 8), and Forties 8 cargoes (prev. 7). Meanwhile, the supply of five North Sea crude oil grades underpinning dated Brent benchmark to average 655k BPD in July (prev. 607k BPD in June).

RUSSIA: Russia's offline primary oil refining capacity revised up by 0.5mln T in May to 5.0mln T, according to Reuters calculations and sources; with offline primary oil refining capacity seen falling 38% in June vs May to 3.048mln T.

30 May 2023 - 19:32- EnergyResearch Sheet- Source: Newsquawk