Will Cunliffe
Research Analyst, The Officials
Don’t fix what is broken
Prices continue to freefall, ADNOC finally released their OSPs, Iraq are the latest OPEC member to threaten quitting and the latest Dallas F
Prices continue to freefall, ADNOC finally released their OSPs, Iraq are the latest OPEC member to threaten quitting and the latest Dallas Fed Energy Survey tempers long-term expectations for oil and gas activity.
$72 Brent! It just keeps dropping off and the prompt spread is sinking deeper into contango – though more deferred spreads remain in backwardation. While prices are plunging, ADNOC finally got around to releasing its July OSPs – in the nick of time, just six days before the month starts… Murban was (mechanically) set at $101.48/bbl but the other grades are where you find the fun. Upper Zakum, Umm Lulu and Das were all set at parity to Murban yet again. They’ve done this every month since the April OSP (the first after the war began). Some buyers reported disappointment, as recent UZ and Das tenders have been offered at discounts. The revolving door is spinning at breakneck speed! The UAE’s abandonment of OPEC might trigger a chain reaction. Iraqi media is chattering about a potential quitting of the group in order to boost output.
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