Crude oil futures climbed in Asia’s mid-morning trade on June 30, as data from the American Petroleum Institute revealed a substantial drop in US Crude stockpiles. In addition, the market anticipated the OPEC+ meeting on July 1. As a result, the ICE August Brent futures contract was up 43 cents/b from its previous closing of $75.19/b at 11:13 a.m. Singapore time, while the NYMEX August light sweet Crude contract was up 49 cents/b at $72.98/b.
The American Petroleum Institute’s data, which indicated a drop of 8.15 million barrels in US oil stocks for the week ended June 25, sparked some bullishness in the market. However, in downstream goods, the report was less encouraging, with gasoline and distillate stockpiles growing by 2.42 million barrels and 428,000 barrels, respectively.The market, on the other hand, appeared unfazed by the product builds, which may be ascribed to higher refinery utilization, which S&P Global Platts Analytics anticipates to have averaged 16.35 million b/d in the week ending June 25, up from 16.11 million b/d reported by the EIA the week before.
Moreover, the market remains upbeat about US product demand, particularly gasoline consumption, with Apple Mobility data showing the US driving activity remained around record highs in the week ended June 25, at 162 percent of the January 2020 baseline.
The market will now wait for more complete data from the Energy Information Administration for more pricing cues, which is expected to be provided later this month, on June 30. Meanwhile, the market is focused on the OPEC+ meeting on July 1 after the Joint Technical Committee meeting on July 29 provided little clarity on the producer group’s August output intentions.