Today’s Market News • Venezuela: After a slow May, exporting around 875,000 bpd, they were able to ramp up shipments of oil and refined products to 1.1 million bpd in June. The largest destination, due to sanctions, was China where the two countries have an “oil for loan” deal where Venezuela borrows money from China and pays them back with oil. According to Reuters, the U.S. received zero oil from Venezuela in June.
• Economic Reports This Week: Today: EIA/DOE Energy Stocks 9:30am CST, Jobless Claims 7:30am CST Friday: June Unemployment, Export Sales 7:30am CST
• API Energy Stocks: The API Energy Stocks were released yesterday and showed a draw of 5 m/b on crude, a draw on distillates of 1.70 m/b and a draw on gasoline of 88,000 bbsl. The latest Reuters poll for DOE inventories to be released this morning is calling for a draw on crude stocks of 2.964 m/b, a draw on distillates of 997,000 bbls and a draw on gasoline of 2.167 m/b.
• Market Opinion: Market analysts will be on the watch today for a confirmation of the API’s report of a draw on oil stocks of 5 m/b. Also, watch for updates on Iran who is warning they will take the next step in enriching uranium this Sunday. Iran already breached the uranium stockpile limits set by the last administration’s nuclear deal. Iran’s President is trying to pressure Europe into a new deal now. Light holiday trading is expected, however that can sometimes cause a volatile trading range.