Crude Range Trading While Watching Geopolitical Events

Oil prices are moderately higher during the APAC session today as they range trade given the significant uncertainty stemming from recent events in Israel. Markets are watching closely for any expansion of the tensions into Iran. A risk premium was added to oil on Monday but it hasn’t widened while the aggression is contained within Israel/Gaza. The USD index is flat.

• Brent is up 0.3% to $87.96/bbl. It approached $88 earlier but only reached $87.99, the intraday high. Earlier it fell to $87.70. WTI is 0.3% higher at $86.20 and has also been in a narrow range between $85.83 and $86.26.
• The Saudi Press Agency is relating that Saudi Arabia will continue to support OPEC+ in ensuring a balanced oil market.
• There are tentative hopes that demand from China may increase after reports that the government deficit will be allowed to widen to boost growth.
• Russian product exports fell to a 3-year low in the first week of October due to its diesel export ban and a drop in refinery utilisation due to seasonal maintenance, according to Bloomberg.
• Later the Fed’s Bowman, Waller, Bostic and Collins speak plus the September Fed minutes are released. On the data front, US September PPI is released. There is also US crude and petroleum inventory data. The ECB’s Lagarde and Panetta will attend the IMF/World Bank annual meetings.