- Oil heads for a fourth consecutive weekly gain as global markets tighten
- September ’23 WTI gains $1.15 this morning to trade around $76.80/Bbl
- Equities trade lower while the dollar continues to strengthen relative to its recent lows
- Russian crude oil exports have fallen for the second week, hitting a six-month low in the four weeks to July 16
- Additionally, the nation plans a 0.5 MMBbl/d cut in oil exports in August
- Saudi Arabia's crude exports dropped below 7 MMBbl/d in May
- Saudi's shipments may further decrease due to a 1 MMBbl/d production cut in July and August
- U.S. crude inventories dropped by 0.71 MMBbl last week, buoyed by a surge in exports and increased refinery utilization
- Sluggish growth in China and economic concerns have contributed to keeping oil prices range-bound in 2023
- However, China introduced stimulus measures to support purchases of cars and electronics on Friday
- Ship-to-ship transfers of Russian Urals crude drop sharply (Bloomberg)
- Ship-to-ship transfers of Russia’s flagship Urals crude fell to just one in July from 14 in June
- Regulatory scrutiny, cheaper freight, and the seasonal absence of ice-strengthened ships near Russia's western ports are likely contributing to the decline
- In May, the EU banned ships involved in illegal transfers from its ports. However, not all transfers, including of Russian oil, breach EU sanctions unless the cargo exceeds $60/Bbl, a threshold Urals oil has recently passed
- Biden administration proposes to raise the cost of drilling on federal lands (Bloomberg)
- Biden's administration on Thursday proposed a rule that would raise the royalties on federal land oil and gas extraction to boost taxpayer returns
- These new charges from the Interior Department involve an increase in royalty rates, bid requirements, and measures to protect wildlife and cultural sites
- Under the 2022 IRA, the Interior Department has raised royalty rates for public land drilling from 12.5% to 16.67% and the minimum bid at drilling lease auctions from $2 to $10 per acre, changing rates set since 1920