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Iran warms up for the final sprint (Brent: $64.50)

Supreme leader of Iran, Ali Khamenei, throws in a few last minute reminders for the nuclear negotiations. Financial sanctions are to be lifted "immediately" after the deal is signed, while other sanctions should be lifted in "reasonable time". He is of course perfectly aware that this is not a possibility right now as U.S. Congress has already passed a law (which Obama signed a month ago) that allows Congress to review (and potentially reject) any deal between US and Iran. Thus we think Khamenei's remark is to give Iranian negotiators more leverage in the final stages before the self-imposed 30 Jun deadline. It of course depends on your definition on "immediately". Congress has 30 days to review a deal.

Russia is gaining on (and surpassing) Saudi Arabia as the biggest supplier to China. For the month of May, Bloomberg reports that China imported nearly 1 mbpd from Russia while 'only' 720,000 bpd from the Saudis. It 'might' have to do with Russia accepting the Renminbi as payment, whilst Saudis still stick to USD. Angola sold 770,000 bpd and came out ahead of Saudi Arabia as well.

Later today (16.30 CET) the US oil inventories will be published.