Mid-Day Oil & Products Summary: Crude Jumps on Libya Supply Worries

Crude Has exceeded its first resistance level, driven by claims from one of Libya’s competing administrations that it will shut in the country’s oil production.

• Brent OCT 24 up 2.7% at 81.15$/bbl
• RES 1: $80.52/82.40 - 50-day EMA / High Aug 12 and key resistance
• WTI OCT 24 up 2.7% at 76.87$/bbl
• RES 1: $76.26/78.54 - 50-day EMA / High Aug 12 and key resistance
• Libya’s Eastern-based government announced a “force majeure” at all fields, terminals and oil facilities, Bloomberg said. The move is in response to the rival Tripoli-based government’s attempt to take control of the Libyan central bank.
• Exchanges of rocket fire between Israel and Hezbollah over the weekend and renewed concerns of an expanded conflict have also been supporting oil prices during the morning session.
• Gasoline and diesel cracks remain lower on the day, with gasoline seeing a likely softening in demand as the summer travel season winds down.
• US gasoline crack down 0.5$/bbl at 13.69$/bbl
• US ULSD crack down 0.2$/bbl at 22.69$/bbl
• Russia’s 441k b/d Omsk refinery is operating as normal despite a fire at the refinery, the refinery’s press service said, cited by Kommersant.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to edge down in the week to Aug. 29 according to OilChem, with Jilin Petrochem and Cangzhou Petrochem starting maintenance.
• China’s domestic refineries currently have around 57k mtpa of capacity offline due to maintenance, according to OilChem.
• Global airline passenger capacity is set to decline to 119.63m seats in the seven days commencing Aug. 26, OAG said.