- Oil is trading higher ahead of expected inventory draw
- The API is forecasting a draw of 9.2 MMBbls ahead of the official data release by the EIA today
- Rystad cuts Permian oil growth forecast (BBG)
- Citing industry consolidation and a slowdown in drilling, consultancy Rystad sees Permian supply growth slowing
- Rystad expects production to grow by 252 Mbbl/d between the last three months of 2023 and the fourth quarter of 2024, down from its prior forecast of 362 MBbl/d
- Their report stated, "Continued consolidation is putting pressure on Permian drilling levels,” and “we no longer expect a significant drilling recovery later this year.”
- Diesel refining margins in Asia are improving (BBG)
- Asian diesel cracking margins are up about 30% over the past month, as unexpected refinery outages have provided relief to margins that have suffered this year
- The outages have forced some refiners in Asia to seek millions of barrels of diesel and jet fuel for June and July
- Improved refining margins should support crude prices
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