This snippet from ANZ is a good summary of the tailwinds supporting the boost for oil prices:
Supply factors:
- signs of falling OPEC+ production emerged
- Average shipments of Russian crude have dropped below their February averages, according to ship tracking data. Nationwide exports of crude fell to 2.86mb/d in the week to 9 July. There was no obvious sign of maintenance at Russian ports that may have led to the sharp drop in flows.
- also signs that the market for Saudi crude is tightening
On the demand side:
- The Energy Information Administration raised its forecast for global demand, which will see the market move into deficit in coming months
(ps. Greg on the EIA forecast ICYMI: EIA: World oil demand forecast to rise by 170K BPD to 1.76M BPD YoY)
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Oil chart update, hourly candles:
