- Oil trades higher ahead of Fed Chair’s congressional testimony
- August ’23 WTI gained 5c this morning to trade around $71.24/Bbl
- Yesterday, the July ‘23 WTI contract expired at $70.50/Bbl, down by $1.28/Bbl, but finished $3 above midmonth's near $67/Bbl lows
- Equities and the dollar remain relatively unchanged as Fed Chair Powell is set to testify before Congress today, following last week's pause in interest rate hikes
- Despite China's incremental steps to boost its economy, concerns arise about the adequacy of these measures to drive substantial growth
- Additionally, the EPA, after a one-week delay, is expected to announce its decision on a potential increase in the U.S. biofuel mandate
- Subdued Jet Fuel Demand Hampers 2023 Crude Growth Forecast Amid Slow Asian Flight Recovery (Bloomberg)
- Forecasts for 2023 had projected jet fuel to significantly drive crude demand growth post-Covid, but sluggish recovery of international flights, especially in China, is damping expectations
- Contrary to IEA's projection of jet fuel driving 45% of 2023's demand growth, airlines are likely to use 0.7 MMBbl/d less than in 2019, mainly due to fewer long-haul flights in Asia, according to FGE's Eugene Lindell
- Additionally, U.S. jet fuel demand remains 15% lower than in 2019, despite a five-year seasonal peak in domestic travel in June