End of Day Oil Summary: Crude falls back

Crude edged back down after finding some earlier support amid global demand concerns and some tentative supply optimism. Current weakness is due to economic concerns in US and China combined with high flows out of Iran, optimism around a return of Iraqi flows via Turkey and the possible temporary lifting of US sanctions against Venezuela.

• Brent OCT 23 down -0.3% at 82.96$/bbl
• WTI OCT 23 down -0.3% at 78.62$/bbl
• Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan said the Kingdom has efficient tools to stabilize the energy market during the BRICS summit.
• Political Risk: BRICS Invite Six Nations To Become Members, Inc. Saudi & Iran.
• US officials are drafting a proposal to ease sanctions on Venezuela allowing more companies and countries to import its crude oil if the South American nation moves toward a free and fair presidential election.
• Turkey’s foreign and energy ministers met the head of Iraq’s semi-autonomous Kurdistan regional government for talks on Thursday, including on oil exports.
• OPEC’s core members may need to consider further production cuts as some of the group’s most troubled nations - Iran, Iraq, Libya, Nigeria and Venezuela - achieve unexpected supply growth, Ed Morse, Citigroup’s head of commodities research, said.
• Europe’s crude slate is turning even sweeter as record volumes of US crude and a slight increase in Brazilian crude heads to Europe according to Vortexa.
• Tankers previously deployed on Russian trades are now returning to the mainstream market as Russian oil trades above the G-7 price cap, according to Norwegian tanker owner Frontline.
• Nigeria is scheduled to reduce loadings of Escravos to 123kbpd in October, from 158kbpd in September, according to programs.