- Oil is trading lower at $81 after posting a gain of more than $1.50 yesterday
- The US Department of Energy is seeking to purchase another 3 MMBbls of crude for the SPR for delivery in August and September
- Prices found support yesterday following IEA shifting its forecast to a deficit (-322 MBbl/d) in 2024 in addition to ongoing Ukrainian drone attacks on Russian oil infrastructure
- EU warns against the growing threat of Somali piracy (BBG)
- Amid continued attacks in the Red Sea against merchant vessels by Houthi militants, the EU has warned that piracy off the coast of Somalia has also been increasing
- Piracy attacks have been rising since last year, when a vessel was hijacked for the first time since 2017
- Further avoidance of the Red Sea by merchant vessels and tankers could lead to higher freight and tanker rates, which have already surged this year
- Russian refinery attacks could threaten product flows (BBG)
- According to RBC, Ukraine’s recent attacks on Russian refineries could impact the global flow of crude products
- Ukraine has attacked eight refineries, which account for 27% of Russia’s capacity
- Ukraine also has the ability to target export terminals, which could threaten about 60% of Russia’s crude exports
