- Oil prices are trading slightly lower Thursday morning amid ongoing OPEC+ supply uncertainty and renewed concerns about the spread of Covid-19
- The OPEC feud between Saudi Arabia and the UAE over OPEC production has caused volatility to surge
- Multiple nations in Asia are dealing with a surge in Covid-19 cases. Japan is set to declare a new state of emergency over the Tokyo Olympics, and the WHO is urging caution about re-openings (Bloomberg)
- Indonesia is in the middle of a major outbreak. Thailand is set to consider a partial lockdown
- The oil volatility index has surged this week amid OPEC’s disagreement (Bloomberg)
- The CBOE Oil ETF VIX Index jumped 28% over Tuesday and Wednesday in the sharpest two-day move since March
- The average volatility for June as oil prices were rising was about 33 on the index
- As of Thursday, the volatility index was at 42, a material move higher
- The EIA is set to report their weekly oil inventory data today, a day later than usual due to the holiday week
- The average survey of economist on Bloomberg expect a 4.4 MMBbl withdrawal in total oil stocks
- US oil stocks have fallen every week since April 23 as domestic supply remains down year-over-year and state reopening has led to a sharp rise/recovery in oil demand