- Oil posted its biggest loss in 6-weeks, yesterday, falling $4.46. Crude has retreated further this morning
- The prompt-month contract is trading near $105.78 and has lost $0.41 since markets opened
- The Cal '23 strip has fallen over $10+ since the start of June, to trade near $90.03, while Cal '24 has fallen by around $5+ to around $81.27
- Market liquidity has been fading recently and can make the market more prone to large swings
- There has been much speculation about what drove yesterday's selloff, with many pointing to Fed Chairman Jerome Powell's testimony on capitol hill where he took a more hawkish tone, and the dollar jumped in response
- Treasury Secretary Janet Yellen stated that discussions about how the U.S. and its allies might cap the price of Russian oil shipments are still ongoing (WSJ)
- Cap may be able to get around the EU's insurance ban
- She added that the EU's oil ban could remove Russian oil from the global market and further increase costs because many shipments of Russian oil are insured in the EU and U.K.
- Putin claimed yesterday that trade with China and India had increased despite Western oil restrictions enacted in reaction to the invasion of Ukraine (BBG)
- “Russian oil supplies to China and India are growing noticeably,” said Putin at the BRICS Summit on Wednesday
- China purchased Russian oil last month for an average price of $93/bbl, $17 less than it paid for imports from Saudi Arabia during the same period, according to customs data
- Russia has a record volume of 74-79 MMBbl of crude oil in transit and floating storage amid the Ukraine war