Mid-Day Oil Summary: Crude Holds Onto Gains

Crude front month is holding onto overnight gains amid a softer US dollar better risk appetite following a more dovish Fed press conference as the markets considers the possible peak of the US Fed rate tightening cycle.

• Brent JAN 24 up 1.2% at 85.65$/bbl
• WTI DEC 23 up 1.2% at 81.44$/bbl
• Gasoil NOV 23 up 0.8% at 900$/mt
• WTI-Brent down -0.02$/bbl at -4.53$/bbl
• Oil markets early yesterday rallied amid comments from Iran for Muslim countries to stop oil exports to Israel before falling back as the conflict in Israel still appears contained.
• Global demand is still uncertain with concern for the economic recovery in China after disappointing PMI data this week as focus switches to the US payrolls data due on Friday.
• The updated Insights Global European ARA product inventories will be released today.
• Europe has sought higher crude imports from the US and Latin America as its crude stockpiles lag according to Vortexa who placed the regions crude stocks at their lowest level in four years at about 455mn bbls 30 October.
• North Sea Crude Loadings in December are set to hit a more than two-year high, helping to boost non-OPEC+ oil supplies to the market, according to Bloomberg.
• Alberta’s oil production fell in September to the lowest since June amid a fall in synthetic crude due to upgrader maintenance according to Alberta Energy Regulator data.
• Kazakhstan is ready to increase crude volumes to France according to its President Kassym-Jomart Tokayev this week.
• Gasoline cracks fell yesterday after EIA showed a weakening of weekly US demand and the four week average was still near the lower end of the five year range despite a small gain. Diesel cracks gained ground after distillates stocks showed a small draw with a drop in production and product supplied on the week.
  • US gasoline crack down 0$/bbl at 11.22$/bbl
  • US ULSD crack up 0.8$/bbl at 44.74$/bbl
• The crude 3 unit at Marathon’s 291k b/d Catlettsburg refinery in northeastern Kentucky will be offline for several weeks after a halt on Tuesday for maintenance according to Bloomberg sources.
• A nascent recovery in truck utilization is supporting resilient US freight diesel demand as rail traffic increases to a 2023 high according to JPMorgan. Global oil demand averaged 100k b/d below expectation in October at 102.1m b/d.
• German diesel/gasoil consumption in October is expected to have risen by 15% on the year to 1.15mbpd, as consumers have started stockpiling heating oil ahead of the winter according to a FGE note.
• CDU utilisation rates at China’s independent refineries fell to 64.25% in the week to Nov. 2, according to OilChem.