Mid-Day Oil Summary: Crude Regains Ground

Front month crude futures have regained ground after trading slightly lower in the morning today supported by OPEC+ cut extensions and a weaker US dollar.

• Brent NOV 23 up 0.6% at 90.49$/bbl
• WTI OCT 23 up 0.5% at 87.34$/bbl
• Gasoil SEP 23 up 3.5% at 978$/mt
• WTI-Brent down -0.04$/bbl at -3.84$/bbl
• OPEC+ crude oil output in August rose by 120kbpd to 40.52mbpd as increases from Iran, Iraq and Nigeria more than offset further reductions by Saudi Arabia and Russia, according to the latest Platts survey.
• OPEC+ may be forced to once again extend or deepen cuts in 2024 as supply balances remain elevated, Citi said in a note.
• Global oil demand is expected to grow by 1.9mbpd on the year in 2023, with demand growth forecast to slow in the last quarter of this year, JP Morgan said in a note.
• The latest Baker Hughes rig count data is due for release at 13:00ET. The US oil rig count was unchanged last week at 512 after a drop of over 100 so far this year.
• US gasoline crack up 1.7$/bbl at 25.12$/bbl
• US ULSD crack up 2.6$/bbl at 51.22$/bbl
• Diesel and gasoline cracks found support yesterday after the recent gradual decline with EIA data showing US inventories still near the low end of the five year range. Concern for US gasoline demand at the end of the summer driving season has been weighing on prices although the upcoming refinery maintenance season could add support.
• Russian diesel exports from key western ports are expected to fall by a quarter this month amid seasonal refinery maintenance and government efforts to maintain domestic supplies.
• The gasoline-producing fluidic catalytic cracker (FCC) at Marathon 593kbpd Galveston Bay refinery in Texas City, Texas, was shut after a fire on Thursday night.
• Daily gasoline consumption is expected to fall 3.3% on the month to 0.467m mt in September, according to OilChem.