OIL: Crude Holds Onto Gains, Markets Watching Francine & Upcoming Sector Reports

Oil prices are little changed during APAC trading today and have held onto Monday’s gains. Brent is around $71.82/bbl after an intraday high of $72.28. WTI is 0.1% lower at $68.65/bbl after rising to $69.08. Soft China August import data may have weighed on prices. The USD index is 0.1% higher. OPEC & EIA reports published later will be watched closely for any changes to the outlook.

• Tropical Storm Francine is being monitored with an estimated 125kbd of crude output in its path, according to Bloomberg calculations from US data. It could impact 9 major oil and gas platforms and 12 Gulf coast refineries. Chevron, Exxon and Shell have evacuated some staff and closed some facilities. It is expected to make landfall on Wednesday in Louisiana as a category 2 hurricane.
• Oil markets have been concerned for some time about the strength of China’s economy. August USD imports rose only 0.5% y/y and while crude import volumes increased on the month, they were down 7% y/y after -3.1% y/y.
• OPEC delayed its planned supply increase by 2 months to December given recent market surplus concerns. Its report out later today will be monitored for changes to its outlook.
• On the supply-side, US industry-generated data on inventories are also released today.
• Later the Fed’s Barr and Bowman speak and US August NFIB small business optimism is released. Also UK labour market data print and BoC’s Macklem speaks.