End of Day Oil Summary: Crude Recedes

Oil has softened slightly Aug. 30 despite US API data showing another substantial inventory drop, while weaker US jobs markets and a sluggish Chinese recovery continue to limit upside.

• Brent OCT 23 down -0.2% at 85.36$/bbl
• WTI OCT 23 down 0% at 81.13$/bbl
• WTI-Brent unchanged at -4.24$/bbl
• Crude oil inventories fell 10.58m bbl, according to the EIA Weekly US Petroleum Summary
• There have been concerns about Hurricane Idalia which has barreled through the rich oil and gas producing Gulf of Mexico but there has been limited production and supply impact so far.
• Crude inventories in ARA region fell 780k bbl in week ended August 25 to 62m bbl, down 1.2% from the week prior according to Genscape data.
• Barclays raised its 2024 Brent price forecast to $97/bbl, up by $8/bbl previously as market balances are expected to further tighten next year, the bank said in a note.
• Russian Deputy Prime Minister Alexander Novak said the country plans to cut oil exports in September by 300kbpd against June levels according to Interfax.
• Russia is likely to export around 3.1mbpd of crude oil in September, which is around 300kbpd lower than June levels, according to Bloomberg vessel tracking.
• Kazakh crude and condensate production fell in August – a second consecutive month as power outages and maintenance at Tengiz hit production levels. Crude and condensate production was estimated at 7.07mn tons or 1.66mn bpd.
• The amount of oil being hauled or stored on ships at sea has fallen to a one-year low, highlighting how production cuts are tightening the market and hurting tanker earnings, Kpler and Vortexa data show.
• Iran’s crude oil production is up again to 3.3mbpd, Oil Minister Javad Owji said, up by 700kbpd since the start of the year, according to Argus numbers.
• Oil supply is expected to remain tight as a Reuters survey of analysts expects Saudi Arabia will extend its voluntary output cut of 1mn bpd into October.
• MNI COMMODITY WEEKLY: Global Crude Stockpiles Drawing but Saudi Expected to Stay the Course – https://enews.marketnews.com/ct/x/pjJscQGNxekI6ahvIR0iHQ~k1zZ8KXr-kA8x6nGX8ShptIPjO1OcQ