Written Commentary
CRUDE OIL
September Crude Oil was lower early Friday but inside Friday’s range higher. There has been no progress reported on relieving the blockages out of the Persian Gulf or the Red Sea, but some longs may be anxious to book profits ahead of the weekend. There are expectations that OPEC+ will raise its output quotas by another 188,000 barrels per day for September when they meet on August 2, but that will only be felt once the blockages are lifted. Kpler data indicated that only one tanker crossed though the Strait of Hormuz on Thursday, the lowest since May 7.
PRODUCTS
Like crude oil, product prices were both lower early Friday on apparent profit taking following strong rallies this month off the closures of export outlets from the Persian Gulf and the Red Sea. US crude oil, gasoline and distillate stocks remain the tightest they have been for this point in the season in at least six years.
NATURAL GAS
September Natural Gas reached its highest level since June 9 early Friday. Global prices are higher as Qatar supplies continue to be curtailed with the blockage at the Strait of Hormuz, and this could be providing some support to US prices as well. EIA Gas storage for the week ending July 17 was 3,056 bcf, +32 bcf from 3,024 the previous week. This was below the average trade expectation of +35 and within the range of expectations from +19 to +39.
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