- Saudi Arabia is prepared to increase oil supply if Russian production falls significantly as a result of increased sanctions (FT)
- There have been talks about the Saudis and the UAE increasing output immediately, which may be revealed at the OPEC+ monthly meeting on Thursday, but nothing has been agreed upon yet, reported Financial Times
- Production increases planned for September could be brought forward to July and August
- China's oil demand is expected to rise as the country emerges from a long period of COVID-19 lockdowns (BBG)
- This will put additional strain on a market that has already tightened as a result of Russia's invasion of Ukraine
- Some analysts predict oil demand will increase by 0.6 MMBbl/d this month compared to April, rising to 1 MMBbl/d day in the second half of the year
- European Union members are still debating a possible Russian seaborne energy embargo as Hungary raised new or already rejected demands, stalling momentum toward a decision
- EU ambassadors will meet again today to discuss the prospects for their sixth sanctions package, which requires a unanimous vote from all 27 EU countries
- Recently, Hungary also requested the right to sell Russian crude, but the proposal was denied during the EU leaders' conference