Crude Eases Back After Overnight Rebound

Crude is easing back after an overnight rebound up towards the highs from yesterday at around 83.8$/bbl. Crude had rallied with support from a weaker US dollar after the US Fed decision yesterday amid broader risk appetite support suggesting the market could be expecting the tightening cycle to slow.

• Brent SEP 23 up 0.6% at 83.42$/bbl
• WTI SEP 23 up 0.8% at 79.38$/bbl
• Gasoil AUG 23 up 0.7% at 838$/mt
• WTI-Brent down -0.01$/bbl at -4.02$/bbl
• EIA inventories data yesterday showed a smaller than expected crude draw with another rise in exports and dip in imports to offset lower production and refinery runs.
• The market continues to be supported by lower OPEC+ supply with Saudi Arabia expected to extend cuts again into September according to a Bloomberg survey.
• Nigeria’s Forcados oil terminal has halted loadings after briefly resuming July 25, according to a report seen by Bloomberg yesterday as it still tries to repair a leak.
• Russia will increase its crude exports in September on the back of higher refinery maintenance according to Reuters sources.
  • Brent SEP 23-OCT 23 up 0.02$/bbl at 0.38$/bbl
  • Brent DEC 23-DEC 24 up 0.17$/bbl at 4.43$/bbl
• Crude time spreads have also regained most of the ground lost yesterday with a potential supply deficit in H2 due to the lower output from Saudi Arabia and Russia. Most spreads are trading just below the highest since April seen yesterday as the WTI prompt spread holds near the highest since November.
• Gasoline and diesel spreads resumed the monthly trend higher supported by ongoing low stocks after small draws shown in EIA data yesterday due to a drop in production with small increases in imports and drop in exports.
  • US gasoline crack down -0.3$/bbl at 40.3$/bbl
  • US ULSD crack down 0$/bbl at 40.24$/bbl