AMERICAS OIL: US OIL: July 10- Americas End of Day Oil Summary: Crude Falls

US OIL: July 10- Americas End of Day Oil Summary: Crude Falls 

WTI Oil ended lower as markets take an optimistic approach to current mediation efforts to de-escalate tensions between the US and Iran. Trump confirmed talks would continue though also said the ceasefire was over, muddying the situation for markets.

• Baker Hughes US Total Rigs rose 1 to 581 Rigs for the week ending July 10th, up 44 from the prior year. Canada total rigs declined 11 to 179 rigs for the week ending July 10th, up 17 from the prior year.
• Overall, the lack of fighting would indicate both sides remain committed to diplomacy though the status of the Strait of Hormuz also remains unclear.
• Oil remains higher for the week as traffic out of the Persian Gulf slows.
• All the major Gulf producers had been scaling up output over recent Middle East optimism. Saudi allocations, soon to be reported, will help indicate how much hope they have of transit recovering.
• US Central Command said “Iran does not control the Strait of Hormuz,” according to a post on X.
• Crude came under slight pressure earlier from the latest IEA report, which suggested that the UAE’s oil output hit a record high of 4.1m b/d in June, higher than previous estimates from other outlets.
• The IEA has downgraded its projections for Russian oil production owing to Ukrainian attacks on the country’s energy infrastructure, Reuters reports.
• US justice department says it files proposed settlement with owner and operator of Keystone pipeline to resolve clean water act violations for 2022 pipeline rupture in Kansas.
• Monroe Energy's 208,000 b/d Trainer, Pa., refinery is currently operating at 75% of its throughput capacity following a June 25 fire, and the facility is expected to be affected by "a tail of outage" into the third quarter, Delta Air Lines Chief Financial Officer Erik Snell said Friday.
• US oil refiners are expected to have about 270,000 bpd of capacity offline for the week ending July 10, increasing available refining capacity by 125,000 bpd, research company IIR Energy said on Friday. Offline capacity is expected to decrease to 200,000 bpd in the week ending July 17 and further to 89,000 bpd in the subsequent week, IIR added.
• Cracks ended lower today as markets assess continued US efforts to reach a diplomatic agreement with Iran.
  • WTI Aug futures were down 1% at $71.41/bbl
  • WTI Sep futures were down 0.8% at $71.35/bbl
  • RBOB Aug 26 down 1.7% at 2.99$/gal
  • ULSD Aug 26 down 0.5% at 3.55$/gal
  • US gasoline crack down 1.8$/bbl at 54.00$/bbl
  • US ULSD crack down 0.3$/bbl at 77.89$/bbl