Mid-Day Oil Summary: Crude Slides with OPEC JMMC

Crude prices have eased prior to the OPEC+ JMMC meeting and ahead of the updated US petroleum inventory stocks later today. The ministerial panel recommended no changes to current policies. Prior to the meeting, Saudi Arabia and Russia reiterated their intention to stick to the current output and exports cuts and are planning to review current cuts next month.

• Brent DEC 23 down -1.8% at 89.25$/bbl
• WTI NOV 23 down -2% at 87.45$/bbl
• WTI-Brent down -0.03$/bbl at -3.45$/bbl
• The Joint Ministerial Monitoring Committee (JMMC) met today shortly after 13:00CET and recommended no changed to current policies.
• API weekly oil stock data from late yesterday: Crude -4.21mbbl, Cushing +0.705mbbl, Gasoline +3.946mbbl, Distillate +0.349mbbl
• The EIA weekly petroleum inventory data is due for release this afternoon at 15:30BST.
• Crude inventories in ARA region fell 5mn bbls or 9.2% in week ended September 29 to 49.3mn bbls according to Genscape.
• Russia is working with Kazakhstan on supplying oil via the CPC pipeline and is not concerned it will be affected by geopolitics, Russian Energy Minister Nikolai Shulginov said according to Interfax.
• The 615kbpd Al-Zour refinery will start operations at its third unit within a few weeks, before the end of October, KUNA cited KIPIC spokesperson Abdullah Al-Ajmi.
• The recent selloff in gasoline is excessive because global inventories are very low according to a Goldman note.
• Diesel cracks continue to pull back as Russia is ready to partially lift its diesel ban in the coming days by allowing pipeline exports subject to quotas according to sources cited by Kommersant. The US front month diesel crack spread is down to 42.6$/bbl from a peak of 48.9$/bbl on 2 Oct and from a previous peak of over 56.7$/bbl in mid Sep.
• Diesel markets have followed the wider market correction lower in the last week weighing the impact of the Russian fuel export ban against recent high Asian exports amid economic concerns from a stronger USD and future major central bank policy.
• Gasoil time spreads are also falling towards the lows seen early last week with the prompt spread nearing 24$/mt and Dec23-Dec24 approaching 90$/mt.
• Gasoil OCT 23 down -2.7% at 925.5$/mt
• ULSD NOV 23 down -3% at 3.1$/gal
• Gasoil OCT 23-NOV 23 down -4.75$/mt at 24.5$/mt
• Gasoil DEC 23-DEC 24 down -11.25$/mt at 88.5$/mt
• EU Gasoil-Brent down -1.6$/bbl at 27.74$/bbl
• US ULSD crack down -1.8$/bbl at 42.73$/bbl