End of Day Oil Summary: Crude Stable

Crude reverses the earlier decline as tight supplies and low stocks continue to support crude markets. A weaker US dollar is adding to the price support as the market considers the potential for the US Fed to pause the recent rate hike cycle.

• Brent NOV 23 unchanged at 90.65$/bbl
• WTI OCT 23 down -0.2% at 87.35$/bbl
• The near-term crude option put skews are holding steady today but longer term spreads continue to turn more bearish amid ongoing concern for future oil demand growth and uncertainty over OPEC+ supply targets into next year.
• Crude managed money net long positions rose to a six month high with WTI positioning the most bullish since June 2022 according to Commitments of Traders data released on Friday. The combined net long positions for Brent and WTI increased by +101k to 452k.
• The Libyan oil ports - Es Sider, Ras Lanuf, Brega and Zueitina – remain shut until at least Tuesday after a severe rainstorm hit the country's eastern region over the weekend, leading to flooding, according to shipping agents.
• Iraq’s Oil Minister Abdel-Ghani said on Sunday Iraq has not yet reached an agreement with Turkey to resume oil exports from the north.
• Saudi Aramco will supply full contractual volumes for October to at least three European refiners according to Bloomberg sources.
• Saudi Aramco will supply full contractual crude volumes to at least four customers in Asia for October.
• OPEC+ output cuts and the Saudi Arabia and Russia cut extensions to year-end suggest a widening oil-market deficit of more than 2mbpd in 2H according to Bloomberg analysis.
• Crude global floating storage stationary for at least 7-days fell to the lowest since December at 81.02mbbls as of 8 Sep according to Vortexa down 5.8% from the previous week.
• An increase in DPP exports from the Middle East is pushing the EoS market share to new highs according to Kpler.