China Sentiment Weighs on Crude Recovery

Crude markets remain narrowly positive with weak Chinese sentiment and US rate rise fears weighing on crude along with Iran and Venezuela optimism despite OPEC+ cuts.

• Brent OCT 23 up 0.2% at 84.65$/bbl
• WTI OCT 23 up 0.3% at 80.08$/bbl
• Gasoil SEP 23 up 1.2% at 954$/mt
• WTI-Brent up 0.04$/bbl at -4.57$/bbl
• China is due to release its PMI figures later this week which may indicate further disappointing economic news. China stimulus measures to boost its stock market and property sector have been underwhelming for markets so far.
• In the US, energy firms cut the number of active oil rigs for a ninth month in August, Baker Hughes said in a report.
• Brent OCT 23-NOV 23 up 0.05$/bbl at 0.58$/bbl
• Brent DEC 23-DEC 24 up 0.07$/bbl at 4.43$/bbl
• OPEC+ cuts are in full swing at present, especially present in falling Russian and Saudi oil exports but that sentiment is being countered against optimism of sanctions against Venezuela and Iran easing. Iranian oil exports have surged in August, helping to pressure global benchmarks. There is also hope of a return in northern Iraqi flows vis Turkey.
• Diesel and gasoline markets again edged higher with low global inventories and tight supplies supporting prices. US distillates stocks were little change in data last week and European ARA Gasoil stocks dipped slightly lower with both well below normal.
• US diesel markets surged Friday are face further support with the region the main market likely to support Europe this winter as it still adjusts to life without Russian volumes.
• US gasoline crack down -0.7$/bbl at 29.79$/bbl
• US ULSD crack down -0.9$/bbl at 56.26$/bbl