Mid-Day Oil Summary: Crude Extends Recovery

Crude is extending the recovery today to regain some of the lost ground this week although front month futures are still net down on the week amid global demand concern.

• Brent JAN 24 up 1.1% at 80.91$/bbl
• WTI DEC 23 up 1.1% at 76.6$/bbl
• Gasoil NOV 23 up 1.6% at 826$/mt
• WTI-Brent unchanged at -4.29$/bbl
• The ICE and Nymex commitments of traders reports are due for release after the close today at 18:30GMT and 15:30ET. Crude and ICE Gasoil managed money net long positions last week fell to the lowest since early July.
• The latest Baker Hughes rig count data is due for release at 13:00ET.
• OPEC+ crude oil output rose by 180kbpd month on month in October to 42.71mbpd, amid higher output from Iraq and Iran according to the latest Platts survey.
• An extension to Saudi Arabia’s 1mbpd voluntary oil production cuts is very probable, as the market would otherwise risk a very high supply surplus in the first half of next year, Commerzbank said in a note.
• One major European refiner requested a smaller than normal contractual volume of crude from Saudi Aramco for December delivery according to Bloomberg sources.
• China bought an average of 1.05mbpd of Iranian oil in the first ten months of this year, Vortexa ship-tracking data showed, 60% above pre-sanction peaks in 20217, Chinese customs data showed, cited by Reuters.
• Two key buyers of Canadian heavy crude are set to boost their imports of Venezuelan crudes, possible replacing Canadian crude demand, ArgusMedia said.
• India is looking to diversify its oil purchases and is possibly looking at Venezuela, as high global prices have pulled down the country's crude imports according to S&P Commodity Insights.
• Abu Dhabi National Oil Co. plans to retain more supplies of Upper Zakum crude for domestic use in the Ruwais refinery. Adnoc is considering supplying less to buyers under long-term contracts starting in 2024 according to Bloomberg sources.
• Front-month time spreads for diesel are weaker in Asia amid rising stocks and following the signs of softer global consumption signalling more bearishness for oil markets according to Bloomberg. The 10ppm gasoil front-month time spread in Singapore has today fallen to 0.30$/bbl from almost 4.70$/bbl in Sept.
• Russian fuel producers have been told by the government that the remaining restrictions on diesel and gasoline exports will be lifted next week, three industry sources told Reuters on Thursday.
• Diesel inventories in China fell in the week to Nov 10 by -0.6% w/w to the lowest since Sep 28 at 16.3m tons according to Bloomberg based on OilChem data. Gasoline inventories rose by 0.3% w/w to 13.3m tons.
• BP is restarting the Gelsenkirchen refinery in Germany as of 8 November after several weeks of planned maintenance, the firm said.
• Gasoline cracks are heading for another net gain on the week with some limited demand support however US diesel futures continue to pull back. The front month US diesel crack spread is falling through the October lows as trucking demand for fuel in the US remains slow and amid a decline in industrial and economic activity in Europe.
  • US gasoline crack up 0$/bbl at 15.3$/bbl
  • US ULSD crack up 1.1$/bbl at 39.61$/bbl