Mid-Day Oil Summary: Crude Slightly Rebounds

Crude futures are finding some support today on an improved risk sentiment following a fall yesterday to the lowest close since the middle of July. A bearish demand outlook in the US and China is weighing on prices, while the Saudi Energy Minister and OPEC’s Sec General reaffirmed oil demand is healthy.

• Brent JAN 24 up 0.5% at 79.97$/bbl
• WTI DEC 23 up 0.5% at 75.73$/bbl
• Gasoil NOV 23 down -3.2% at 811.75$/mt
• WTI-Brent down -0.08$/bbl at -4.27$/bbl
• The updated Insights Global European ARA product inventories will be released today.
• Saudi Energy Minister Prince Abdulaziz bin Salman says the recent oil decline is due to speculators and that oil demand is healthy according to Bloomberg.
• Saudi Aramco has notified at least four North Asian buyers that it will supply full contractual crude volumes to them in December according to Reuters sources.
• Oil officials from the Iraqi Federal government met with representatives of the Association of the Petroleum Industry of Kurdistan (APIKUR) on Wednesday to discuss the resumption of Iraq’s northern flows via the pipeline to the Turkish port of Ceyhan according to Reuters.
• Oil demand growth is China remains a concern after CPI data showing that China has returned to deflation has added to the recent weaker manufacturing data and falling oil products exports.
• Kpler expects China crude imports to slip in Q4 from October levels of ~11mn bpd driven by weaker refinery runs.
• Global oil demand year to date has expanded by 2mbpd and reached 101.8mbpd in the first week of November, JP Morgen said in a note.
• The Russian government is discussing with oil companies to lift the ban on some gasoline exports. Russia’s oil product exports are showing signs of recovery driven by fuel oil and jet fuel following export restrictions and seasonal maintenance.
• CDU Capacity Utilisation rates at China’s independent refineries averaged 62.97% in the seven days to Nov. 9, down 1.28 percentage points on the week, according to OilChem.
• Kuwait’s KPC has sold VLSFO via a term tender for loading between Jan-Jun 2024 according to Reuters sources.
• Gasoline cracks are steady after this week recovering from lows in mid-October with some limited demand support. Diesel cracks are again softer with the wider market demand growth picture offsetting low global inventories.
  • US gasoline crack down -0.1$/bbl at 14.17$/bbl
  • US ULSD crack down -1.4$/bbl at 38.53$/bbl