September 01, 2023 10:55 GMT
Mid-Day Oil Summary: Crude Posts Gains on OPEC Cuts
Crude prices have risen to the highest level since 10 August today as data shows Saudi Arabia has significantly cut its August crude exports, while Russia and Saudi Arabia are expected to continue output cuts into October.
- Brent NOV 23 up 1.2% at 87.88$/bbl
- WTI OCT 23 up 1.2% at 84.67$/bbl
- WTI-Brent down -0.67$/bbl at -3.94$/bbl
- Brent November futures have traded through the first resistance level and bull trigger at 87.37$/bbl with next resistance at the psychological round number of 90$/bbl.
- Saudi Arabia’s observed crude oil exports fell to 5.6mbpd in August, the lowest level since March 2021, amid the kingdom’s pledged voluntary 1mbpd output cut, Bloomberg tanker-tracking data show.
- Russian PM Novak said yesterday the country has agreed on further actions with OPEC+ and will announce the steps next week.
- Better China related asset sentiment is also helping support crude with efforts to improve housing demand in focus as the country looks to stimulate the economy.
- The latest Baker Hughes rig count data is due for release at 13:00ET.
- US nonfarm payrolls are due to release at 08:30 ET as the markets look for signs of US Fed policy.
- China’s oil demand this year is likely to have peaked at 16.4mbpd in Q2 according to Jianan Sun at Energy Aspects. Demand is expected to ease to 15.8mbpd in Q3 before rising back to 16.2mbpd in Q4.
- Kuwait’s crude exports plunged in August to 1.48mbpd, the lowest level since at least late 2016 because of the ramp up of the Al-Zour refinery.
- Marathon’s 596kbpd Garyville refinery has resumed normal operations and is running at planned rates, a spokesperson told Argusmedia late on Thursday.
- Russian ESPO crude delivered DES Shandong Province is trading at a premium to Brent for the first time since November, according to OilChem.
- Kazakhstan expects to transport 900k tonnes of oil via Russia’s Druzhba oil pipeline to Germany by the end of 2023.
- China has issued 15mn tons of oil products export quotas to companies in its third batch for 2023, consists of 12mn tons of refined products quotas, made up of kerosene, diesel and gasoline exports, and 3mn tons of marine fuel.
- Diesel crack spreads have recovered from lows seen yesterday but are still heading for a net decline on the week with easing fears for near term refinery disruptions weighed with ongoing low global inventories.
- US gasoline crack up 0.3$/bbl at 24.3$/bbl
- US ULSD crack up 0.6$/bbl at 47.93$/bbl