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Mid-Day Oil Summary: Crude Extends Gains

OIL

Crude markets are building on their gains from last week amid the risk of supply disruption due to any escalation in the Middle East conflict and easing concern for a US recession.

  • Brent OCT 24 up 0.9% at 80.36$/bbl
  • WTI SEP 24 up 1.1% at 77.69$/bbl
  • OPEC lowered its demand growth to 2.1m b/d for 2024, down 135k b/d compared to last month’s assessment, according to their August Monthly Oil Market Report.
  • Crude backwardation continues to strengthen today after a rally in time spreads last week amid Middle East supply risks and a broader market recovery in risk sentiment which supported the flat price futures.
  • Axios' Barak Ravid reported overnight that the Israeli intelligence community now expects an Iranian attack on Israel to come "within days".
  • Saudi Aramco will supply about 43mbbl of crude oil to China in September, according to Reuters sources citing monthly allocations for term buyers.
  • Money managers cut net long crude positions again last week to the least bullish since mid-June with concern for demand growth in China and US and market oversupply weighed against Middle East risks.

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