Mid-Day Oil Summary: Crude Stabilises

Crude prices have ticked up this morning, stemming yesterday’s losses. An escalating Middle East conflict, stronger U.S. services sector data, and a cut in production at Libya's Sharara oilfield are helping offset global demand concerns.

• Brent OCT 24 up 0.1% at 76.37$/bbl
• WTI SEP 24 up 0.1% at 73.02$/bbl
• Oil rose on news that an American base in Iraq had been attacked amid growing concerns that Iran is expected to retaliate for Israel’s killing of Hamas’ political leader in Tehran.
• The API US oil inventory data is due at 16:30ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• The EIA Short Term Energy Outlook is scheduled at 10:00ET (17:00BST).
• Saudi Aramco has maintained its medium and long-term demand forecasts and is confident that oil & gas demand will not peak soon. 2024 demand growth is seen at 1.6m-2m b/d.
• The startup of the Trans Mountain pipeline has failed to narrow Canadian Crude differentials to WTI, despite previous expectations, Reuters said.
• Hungary won’t suffer any oil shortages because of Ukraine’s decision to block Lukoil crude transiting via the southern leg of the Druzhba pipeline, said Mol CEO Zsolt Hernadi cited by Bloomberg.
• Brent crude prices are likely to stay above $75/bbl as the oil market will withstand macro recessionary fears, according to a Goldman Sachs note cited by Reuters.
• Oil markets are suffering from broader macro concerns but also a more specific backdrop of lacklustre Asian demand according to RBC’s head of commodity strategy, Helima Croft.