The September Brent futures flat price has a mixed morning, ticking down from $83.65/bbl to a low of $83.45/bbl by 07:30 BST, before rallying to $84.10/bbl by 08:55 and then subsequently falling back down to $83.65/bbl as of 11:10 BST (time of writing). China added 1.48mb/d to either commercial or strategic oil stockpiles in June as lower refinery throughput outweighed soft crude imports, undermining the still bullish demand forecasted for 2024 by groups such as OPEC and the IEA. Additionally, China’s June diesel production of 16.566 million mt is down 7.5% y/y, with much of this likely due to the increased use of LNG-fuelled heavy-duty trucks. In the US, North Dakotan oil production is down 49kb/d in May vs April to 1.195mb/d, the lowest levels since January, according to the state’s industrial commission. Finally, according to the European Court of Auditors (ECA), the EU’s goals to produce and import a combined 20 million mt of green hydrogen fuel are unrealistic and unlikely to be met despite €18.8 billion being made available for green hydrogen projects as part of the bloc’s plans to end its reliance on Russian energy imports. At the time of writing, the front and 6-month spreads are $0.94/bbl and $3.81/bbl, respectively.
