In its ubiquitous manner, crude futures decided to try and run the stops at the US equity open but were unable to get to $50 (49.984 in July WTI) before fading back a little. Ths driver – according to the narrative-du-jour – is turmoil in Libya and ongoing Nigeria and France disruptions, which are both offsetting a surge in OPEC production to its highest level since 2008 in the minds of the machines. "The market is pretty much on hold until we get all this information," says Deutsche Bank's Jens Pedersen of the data dump and OPEC meetings this week. "We need to get that out of the way to see if there is a reason for oil to go higher."
OPEC production rose to 32.575m bbl/day – its highest since 2008…
And the result – a machine-driven meltup, which however failed to tag $50 stops for now…
As Bloomberg reporets, key stories shaping mkt today: Libya guards take control of town linked to 2 oil ports from Islamic State militants. French refinery strikes continue; potential for strike action seen in Norway, Brazil
Libya’s Petroleum Facilities Guard captures town of Bin Jawad after clashes w/ Islamic State: spokesman
- Bin Jawad is a crossing point to oil ports of Es Sider and Ras Lanuf, which have been closed since Dec. 2014
- Petroleum Guards seize Nofaliyeh town from IS
French Refinery Strike…
- Exxon’s Gravenchon, Fos Refineries in France operating normally: spokeswoman
- Total says 216 French gas stations completely out of stock, another 337 stations partially out of gasoline out of a total of 2,200
- La Mede refinery operating at 75% of capacity while 4 others are halted; Total operates 5 of France’s 8 refineries
Potential Strike Action…
- Norway oil industry faces risk of strikes after talks between oil cos., Industry Energy union broke down in less than a minute
- “The differences were so obvious so early on that it was just as well to make an appointment with the National Mediator right away rather than sit here for two days,” says union leader Leif Sande
- Brazil FUP oil union plans 1-day national strike on June 10 to protest against acting president Michel Temer
- Says workers will lose benefits under new administration, Petrobras could be privatized
Other Headlines…
- Russia said to export 28 cargoes of ESPO crude for July, up from 23 in June: 4 people w/ knowledge
- Japan crude imports rise 3.4% y/y to 16.54m kls in April: METI
- Oman crude official price for July set at $44.31, highest this yr; up from $39.40 in June: DME
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