The Officials: Nothing left to give!
Everyone just wanted a calm lead-up to the weekend after the carnage of the last week. Brent oscillated gently in a 50c range throughout the European session, reaching the close at $68.31/bbl. Expiry is looming on Monday and the prompt spread remains beefy at $1.11. The Aug WTI/Brent spread has closed in significantly in recent sessions, from around -$2.80 on Wednesday morning to -$2.38 by today’s close.
The headline that OPEC+ is considering another fake output hike in its early July meeting sent Brent down again, all the way to $67.45/bbl. Our question has to be: why does the market still care what OPEC decides? They’re doing whatever they like anyway! And have been for months! Furthermore, early analysis by The Officials suggests even Saudi Arabia is at or approaching its commercial maximum output. They’re all maxed out!