ICE Brent is poised to close the week above $66 as trade optimism lifts sentiment, while stubborn geopolitical tensions and shifting wildfire risks keep supply concerns alive.

ICE Brent futures are set to close this week above $66 per barrel, a more than 3% weekly gain after markets were buoyed by the prospect of US-China trade talks. Supply risks from Canada’s wildfires seem to be subsiding after Alberta saw some rain earlier in the week, however, they might reappear again on forecasts of upcoming June heatwaves. 

Saudi Arabia cuts its July prices. Saudi Aramco slashed its July prices for Asian customers by $0.20 per barrel for lighter grades and by $0.10 per barrel for Arab Medium, back to May levels, citing healthy demand and low regional stocks, half the cut that analysts were expecting. The Iraqi Oil Ministry said that it holds the Kurdish Regional Government legally responsible for the widespread smuggling of oil and refined products from Kurdistan, believed to be at least 150,000 b/d in volume as Erbil defies orders from Baghdad. 

/OilPrice/