Russia goes full circle
The global oil plunge started with increased output as Saudi Arabia and Russia locked horns over production cuts. Four months down the line and multiple cuts Russia have gone full circle with exports of its Urals crude oil grade set to drop significantly next month.
Asian Buying interest failing countered by fresh shipments
Floating Storage is reportedly falling globally. However, Singapore is seeing a different story with reportedly 82.5 million barrels of crude and other oil products in 67 vessels (Bloomberg). This is up from 69.8 million barrels at the end of May and highlights that the significant cuts might need to be deeper if Brent is going to capitalize on it 175% increase since April.
India at 85% consumption and expects to be 100% by September
With Brent futures looking shaky as it struggles to hold above the USD 40.00 a barrel amid fresh concerns about the supply and demand dynamics coming out of Asia. There is a positive vibe coming form the Indian oil minister Dharmendra Pradhan saying demand will be back to normal in the July – September Quarter.