CRUDE WRAP: WTI (Q6) SETTLES USD 0.16 LOWER AT USD 75.85; BRENT (Q6) SETTLES USD 0.30 HIGHER AT 79.85/BBL

The crude complex settled with slight losses in choppy trade, as participants await the formal signing of the US/Iran MoU on Friday in Geneva. Overall, Middle East newsflow was actually fairly light after the US and Iran counterparts confirmed the signing tomorrow, with the 14-point MoU content largely known. As such, focus will be on the talks between the nations, and also any commentary surrounding Israel and Lebanon. Note, modest upticks were seen in benchmarks after Israel's Channel 14 reported that Trump said the US would back Israel if it attacks Iran; worth noting the headlines didn't get much airtime across media outlets. 

Elsewhere, benchmarks saw pressure after Bloomberg reported that Kuwait begins boosting oil output to above 2mln bpd in a week, and sees faster oil output than previously thought, and will lift all force majeures with immediate effect  To also boost refining along with oil output. Kuwait's Petroleum Corp later said it is moving towards restoring pre-war production levels, and will increase all production to 2mln BPD within a week coinciding with the reopening of the Strait of Hormuz and resumption of international commercial shipping. 

Moreover, no reaction was seen after OPEC kept its world oil demand outlook for 2026 unchanged. Brought forward a day on account of Juneteenth market holiday on Friday, the weekly Baker Hughes rig count saw oil unchanged at 433, nat gas rise 1 to 122, leaving the total up 1 at 563.

Trade on Friday may be thinner on account of the aforementioned market holiday, but of course a lot of attention will be on US/Iran signing. Into settlement, WTI and Brent edged higher, albeit on no particular headline, to settle at around peaks. WTI traded between USD 72.83-76.06/bbl and Brent USD 76.54-80.05/bbl.