Mid-day Oil Summary: Crude Spikes on Potential OPEC+ Delay

Oil markets spiked after a Reuters sources led piece suggests OPEC+ are discussing delaying an expected return of barrels from October.

• Brent NOV 24 up 0.7% at 74.29$/bbl
• WTI OCT 24 up 0.9% at 70.98$/bbl
• The headline read: OPEC+ discussing a delay to planned oil output hike in October, three OPEC+ sources say
• Demand concerns, mainly from China and uncertainty over the Libyan supply situation have complicated OPEC+ efforts to unwind voluntary cuts that are costing key members global market share.
• Libya’s central bank believes that an agreement can be reached soon that will allow the country’s oil output to resume to normal levels after a political dispute cut it sharply. An agreement could return 500kbpd of supply, Bloomberg said.
• Saudi Arabia, Russia and the US ('Big-3') reduced crude/condensates exports in August m/m, pushing their combined share of global seaborne exports to a multiyear low according to Vortexa.
• The day delayed API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• ARA crude inventories rose by 275k bbl or 0.5% w/w for the week ended August 30 to 54.3mn bbls according to Genscape.
• Argus has launched three daily price assessments on Wednesday for crude exported from western Canada's newly expanded TMX pipeline.
• Goldman Sachs sees the latest oil price selloff as “large relative to the fundamental news” with room for financial demand to recover, according to Bloomberg.