Mid-Day Oil Summary: Crude Regains Some Ground

Crude has found some support after earlier losses and a net decline so far this week with upside limited amid global demand concerns and supply optimism. Current weakness is due to economic concerns in US and China combined with high flows out of Iran, optimism around a return of Iraqi flows via Turkey and the possible temporary lifting of US sanctions against Venezuela.

• Brent OCT 23 up 0.4% at 83.56$/bbl
• WTI OCT 23 up 0.4% at 79.19$/bbl
• Gasoil SEP 23 unchanged at 913$/mt
• WTI-Brent down -0.03$/bbl at -4.37$/bbl
• Upside is limited by concern for inflation as the market looks to the Jackson Hole economic symposium for signs of future Fed policy and a potential extension to the US rate tightening cycle.
• Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan said the Kingdom has efficient tools to stabilize the energy market during the BRICS summit.
• Political Risk: BRICS Invite Six Nations To Become Members, Inc. Saudi & Iran.
• US officials are drafting a proposal to ease sanctions on Venezuela allowing more companies and countries to import its crude oil if the South American nation moves toward a free and fair presidential election.
• Turkey kept southbound shipping traffic through the Dardanelles Strait suspended for a second day because of wildfires in the area.
• Diesel and gasoline markets again edged higher yesterday with low stocks supporting prices despite the small gains in US inventories seen in the data this week. The US front diesel spread yesterday traded up to the highest since January at around 52.5€/MWh.
• US gasoline crack up 0.2$/bbl at 29.14$/bbl
• US ULSD crack up 0.1$/bbl at 51.36$/bbl
• The gasoline unit impacted by an unplanned outage at TotalEnergies Antwerp refinery could last for “several weeks”.
• The updated Insights Global European ARA product inventories will be released today.
• Indian diesel exports to Singapore are set to hit a 19-month high in August, above 330,000 metric tons according to various vessel tracking firms.