Brent crude prices will move higher after some first half July weakness predicts NYC-based PIRA Energy Group.
Brent crude prices will move higher after some first half July weakness with tighter global crude markets and reduced OPEC spare capacity even as Saudi Arabia makes up for lower Iraqi exports.
Urals differentials will firm over the next two months. Gasoline cracks still have a bit of strength for now, but with ample inventories they will narrow next month and especially in September.
Distillate inventories, while currently rising, remain low and will tighten in the Atlantic Basin in the third quarter, driving diesel cracks higher.
Source: PIRA Energy Group – Weekly Oil Market Recap