- EIA's June DPR report shows that the drillers in the Permian Basin are increasing oil production
- Output from the Permian reached 5.14 MMBbl/d in May, the highest since March 2020
- The shale basin is forecast to increase supplies through July
- However, the impact of rising domestic crude supply on fuel costs will be significantly mitigated by a lack of refining capacity
- Some Asian buyers have been purchasing Middle Eastern crude earlier than normal on the physical market, an indication of strong demand in the largest oil-importing region (BBG)
- Refiners from Japan to Taiwan, Thailand, and South Korea purchased cargoes for loading from Qatar, Abu Dhabi, and Oman in August, with some deals being made at premiums higher than the previous month, according to traders
- The big question weighing on Asian oil demand is whether China's economy able to swiftly recover from the crippling Covid-19 lockdowns