Oil Benchmarks Subdued Despite China Stimulus

Oil markets fail to make much traction Monday after China efforts to boost its economy fail to spur prices meaningfully.

• Oil markets are also keeping watch on Tropical Storm Idalia and any risk it poses to oil and gas output in the US Gulf.
• Idalia was intensifying as it approaches Cuba, according to the latest update. Its most likely impact is a day or two of power outages according to reports.
• Saudi Arabia is expected to extend a voluntary oil output cut of 1 million barrels a day into October, analysts told Reuters last week with a potential announcement likely early September.
• Some earlier oil and oil product market highlights:
• Turkey is about to conclude technical work at Iraq pipeline and aims to make it operational as soon as possible, Energy Minister Alparslan Bayraktar says in interview with state-run TRT but it remains unclear over any agreement with Iraqi officials and timeline to reopen.
• China has issued new oil product quotas according to Platts reports, quoting senior officials Aug 28. The officials declined to comment on volumes. “It looks [like there would be] no restriction on outflows for the rest of the year," an official with a state-owned company said according to Platts.
• Crude global floating storage stationary for at least 7-days fell to 82.34mn bbls as of August 25 according to Vortexa down 23% from the week prior.
• Vortexa reported on large global onshore and floating crude stockpile draws in recent weeks on Friday. As of August the implied crude shortfall has really accelerated with the latest 4-week average showing draws of close to 5mbd it said.
• Marathon confirmed its Garyville refinery continues to operate at reduced rates confirming reports from likes of Argus but US oil product cracks have drifted lower Monday.
• Brent OCT 23 up 0.5% at 84.87$/bbl
• WTI OCT 23 up 0.7% at 80.4$/bbl
• US gasoline crack down -2.4$/bbl at 28.11$/bbl
• US ULSD crack down -2.9$/bbl at 54.22$/bbl