#CL_F The price of crude oil dropped due to increasing inventories and the possibility of a truce with Russia. A break below 63.63 will likely drop to 63.42 or 63.19. Crossing above 64.35 could lead to 64.74, 64.92, 65.20, 65.34, or 65.65.
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Barrels already here anyway, but they signaled a full unwind for Sep, those will be real barrels.
What kind of barrels? Probably on the lighter slate, to keep some degree of control over the med sours.
Don't count on Russia though, they can't ramp up even if they wanted.
Not something you typically do if there is a glut in the market...just saying>
SAUDI ARAMCO RAISES ARAB LIGHT OIL PRICE TO ASIA FOR AUGUST
ARAB LIGHT PREMIUM INCREASED TO $2.20/BBL FROM $1.20/BBL-BBG
Some simple math on OPEC increase for da bears:
548kbopd - 411kbopd = 137kbopd over market expectations
137kbopd / ~105mbopd global oil market = 0.13% of supply
Of which only a portion are “real vs paper”
Panic over <0.1% of incremental supply is silly
Enjoy your weekend