Just one day after Brent triumphantly breached $50 for the first time in six weeks, buoyed by bullish supply data in the US and talk of Saudis curbing exports, the bottom is falling out again for oil early this morning.
Just a few minutes ago, Brent and WTI dropped sharply on heavy one-minute volume and here’s why:
- Petro–Logistics: OPEC supply in July expected to exceed 33 million barrels a day, highest since December 2016
Who is Petro–Logistics, you ask? Well, they’re an oil tanker tracking company based out of Geneva, and they say the extra oil is coming from from Saudi Arabia, United Arab Emirates and Nigeria.
They also said this:
- July output to increase 145,000 b/d from June and more than 600,000 b/d above 1H 2017 average.
And here’s Brent (so much for $50):
“I’m surprised that people didn’t already expect higher OPEC output with Libyan output at 1m b/d,” Giovanni Staunovo, commodity analyst at UBS remarked.
We are too Giovanni.