API reports draw while market awaits EIA report

Both Brent and WTI is heading higher as the focus shifts on geopolitical tensions. WTI is currently trading at $68.7 per barrel and Brent at $5 per barrel premium to WTI.

Key factors at play in the crude oil market –

• According to Reuters, OPEC production is up 0.32 million barrels per day in June as Saudi Arabia pumped 0.7 million barrels more. OPEC production reached 32.32 million barrels per day.
• OPEC numbers also suggest production rise of 0.32 million barrels per day with Saudi production up 0.42 million barrels per day.
• Trump is pressing Saudi Arabia to increase oil production by almost 2 million barrels per day. Saudi Arabia is likely to comply.
• OPEC announced full compliance to 100 percent of the deal from current 147 percent.
• The U.S. reportedly asked allies to stop importing Iranian oil from November this year.
• Libyan faces political crisis as control battle for oil field intensifies. Production drops to 0.6 million barrels in June.
• According to OPEC MOMR, the production was 31.87 million barrels in May, up 35,000 barrels from April. OPEC production was 31.93 million barrels per day in April, up 12,000 barrels from March, according to OPEC’s monthly oil market report.
• A Saudi oil tanker was reportedly attacked by Houthi rebels today, leading to minor damage.
• Venezuela in crisis as oil production declined to 1.3million barrels per day.
• EIA projects U.S. crude production to increase to 11. 4million barrels per day by end of 2019 and U.S. would become the single largest producer by next five years.
• Saudi corruption crackdown yielded $106 billion according to the country’s attorney general.
• Current U.S production at 11 million barrels per day.
• API reported a build of 3.16 million barrels of crude oil. Gasoline saw a huge draw of 4.87 million barrels.

Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.