OIL: Oil Summary at European Close: Crude Rangebound
Jul-03 15:29
Crude markets initially rallied before pulling back after an unexpected draw in US crude inventories reported in the updated EIA weekly petroleum data although only slightly larger than reported by the API yesterday.
- Brent SEP 24 down 0% at 86.22$/bbl
- WTI AUG 24 down 0.1% at 82.73$/bbl
- The near-term crude options skews have turned slightly more bearish again after briefly touching into positive territory earlier this week.
- EIA Weekly US Petroleum Summary - w/w change week ending Jun 28: Crude stocks -12,157 vs Exp -411, Crude production 0, SPR stocks +398, Cushing stocks +345
- ARA crude storage fell 759k bbls or 1.4% in the week ended June 28 to 54.1mn bbls according to Genscape figures.
- The Biden administration remains open to dialogue with the Venezuelan government according to U.S. officials.
- Kazakhstan was still exceeding its OPEC+ quota in June with oil and gas condensate production up 4% m/m on a daily basis to 7.24m metric tons, according to Reuters sources.
- Hurricane impacts for the U.S. are potentially more bearish for oil markets nowadays because they risk refinery shut ins according to RBC’s Head of Commodity Research Helima Croft in a CNBC interview.
- Ratcheting tensions between Israel and Lebanon risk escalating the Middle East conflict by drawing Iran into direct confrontation according to RBC
- Upgrades to the Abu Dhabi Ruwais refining complex have enabled Adnoc to export record volumes of Murban crude this year according to MEES analysis.
- MNI COMMODITY WEEKLY – Beryl Sets Tone for Hyperactive Hurricane Season: https://enews.marketnews.com/ct/x/pjJscVCOlr0I6a5lJkt2HQ~k1zZ8KXr-kA8x6mXXJf1ptIPjO1OcQ
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US STOCKS: Equities Roundup: Nasdaq Outperforming
Jun-03 15:25
- Stocks remain mixed in late morning trade, the DJIA and S&P Eminis lagging mildly higher Nasdaq stocks after this morning's weaker economic data. Stocks reversed opening gains after ISM Manufacturing and Construction Spending data came out weaker than anticipated. Currently, the DJIA is down 225.59 points (-0.58%) at 38461.41, S&P E-Minis down 9.75 points (-0.18%) at 5285, Nasdaq up 62.7 points (0.4%) at 16796.24.
- Energy and Industrials sectors underperformed in the first half, oil and gas equipment and services shares weighing on the former as crude prices gapped lower (WTI -2.59 at 74.40) amid reports OPEC+ planned to restore output. Diamondback Energy -4.50%, Haliburton -4.22%, Schlumberger and Baker Hughes both -2.60%.
- Construction and engineering shares weighed on Industrials: United Rentals -4.08%, Builders FirstSource Inc -3.76%, Parker-Hannifin -3.44%.
- On the flipside, Health Care and Information Technology sectors outperformed in early trade, pharmaceuticals and biotech shares buoyed the former: Moderna +3.37%, Biogen +3.5%, Bristol Myers +2.97%. Meanwhile, semiconductor stocks supported IT: Nvidia gained 2.25% after announcing a 10-fpr-1 stock split Friday, First Solar +1.95%, Qualcomm +0.62%.
- Still some notable earnings releases this week: Bath & Body Works, Crowdstrike, HP, Dollar Tree, Campbell Soup, Five Below Inc, Victoria Secret, Toro, Vail Resorts and Docusign.
UK: Farage To Take Over As Leader Of Reform UK
Jun-03 15:22
Richard Tice, erstwhile head of the right-wing populist Reform UK party, has announced that (at his invitation) former UKIP and Brexit Party leader Nigel Farage will return to lead Reform UK (a successor to both parties mentioned) ahead of the 4 July general election. Farage has said that he intends to lead the party for the next five years, and will stand in the seat of Clacton on England's southeast coast, won by Conservative Giles Watling in 2019 with a 24.7k majority.
- The UK's first-past-the-post electoral system and the party's divisive policy stances makes it very difficult for Reform UK to win any seats in the House of Commons despite currently polling in third place nationwide behind only Labour and the Conservatives.
- Reform's main influence on the election will come from its impact on the vote share of other parties, most notably the Conservatives. While Reform's anti-immigration stances has seen it peform well in white, working-class areas of northern England where Labour historically has been strong, the party garners much of its support from disaffected Conservatvies. With the well-known Farage now heading the Reform campaign this is only likely to further depress the prospects of anything other than a sizeable Labour majority in the Commons after the election.
US TSYS: US TSY 26W AUCTION: NON-COMP BIDS $2.110 BLN FROM $70.000 BLN TOTAL
Jun-03 15:15
- US TSY 26W AUCTION: NON-COMP BIDS $2.110 BLN FROM $70.000 BLN TOTAL
