Mid-Day Oil Summary: Crude Extending Gains

Crude prices are extending gains on the day as expectations of an imminent Israeli ground invasion into Gaza intensify Middle East instability. Concerns to oil markets come despite earlier US intelligence headlines suggested a lack of Iranian knowledge in the Israel attacks. Tight supplies from OPEC+ cuts are also outweighing economic driven demand uncertainty.

• Brent DEC 23 up 3.6% at 89.06$/bbl
• WTI NOV 23 up 3.7% at 86$/bbl
• WTI-Brent down -0.23$/bbl at -4.28$/bbl
• Brent DEC 23-JAN 24 up 0.2$/bbl at 1.39$/bbl
• The latest Baker Hughes rig count data is due for release at 13:00ET. The US oil rig count has resumed the decline in recent weeks down to 497 while the gas rig count edging slightly higher to 118 last week.
• China crude imports slipped in September to 45.74 million tons or 11.18mn bpd – 10% lower than August’s pace of 12.48mn bpd.
• Delta Air Lines 190,000 bpd Trainer refinery in Pennsylvania is expected to resume operations mid-November following a planned maintenance period that began last month according to its Q3 results.
• Russian PM Alexander Novak said it’s too early to talk about what market decision OPEC+ may take in a TV interview earlier Friday.
• Russian deputy PM said the potential for a further reduction in the Urals discount is decreasing in an interview with Business FM.
• US physical crude prices have fallen this week as Saudi Arabia reaffirmed support for OPEC+ efforts to keep prices stable helped to reassure markets that supplies might be boosted in the event of supply disruption according to Bloomberg.