Brent crude is consolidating around $82-83/bbl. The big story over the weekend was Iraq’s oil minister, Hayyan Abdul, saying on Saturday that Iraq would not agree to renew cuts, but flipped on Sunday, saying that Iraq will continue to cooperate with other member states about this cut.
Looking to the refinery margins, spreads have collapsed with stop outs driving the movement. There was a significant drop in RBBR, down to just $21.50/bbl in Jul. There has been a build in EIA gasoline stocks (900kbbls) and refinery utilisation is up 1% .
The big Macro news headlines have kicked off with Roaring Kitty returning to X (formally Twitter) yesterday, which has already resulted in a 70% rally for GameStop. The key data this week is U.S CPI expected to drop from 3.5% YoY to 3.4%. Reaction is critical, with 10yr at key levels. 4.40% is key support.
Onto Googling Oil, the major headlines discussed this week are; Russia finding a huge gas and oil reserve in British Antarctic territory and EU potentially calling time on Russian LNG imports.
The trade idea for this week is; Short Q3 380 east west.