OIL: Crude Steady Ahead of Expected Draw in US Crude Stock Data

Crude markets are holding steady after a correction lower to start of week levels with upside pressure from supply disruption from Libya and falling US inventories set against soft global demand growth expectations. Fed cut optimism is also supportive while tensions between Iran and Israel remain a concern although there has been a lull since the escalation in attacks between Israel and Hezbollah over the weekend.

• Libya’s eastern government announced on Monday it would shut down the country’s crude output and exports.
• US crude inventories are expected to extend a decline in EIA data released today after API data showed stocks fell by 3.4bbl, according to Bloomberg. Gasoline fell 1.86mbbl and distillate fell 1.41mbbl.
• Three tanks at an oil depot in the Kamensky district of Russia's Rostov region are on fire after a Ukraine drone attack, its governor said.
• OPEC provisionally plans to return 543kb/d of supply during Q4 but the group has previously stressed the policy remains flexible if the market appears to be oversupplied.  Further clarity could be expected in early September when new Saudi OSPs and allocations are announced.
• Diesel and Gasoline cracks continue to trend lower, with gasoline the lowest since November and diesel just above the lows from last week amid healthy supply and muted demand.
  • Brent OCT 24 up 0.1% at 79.66$/bbl
  • WTI OCT 24 up 0.1% at 75.62$/bbl
  • Brent OCT 24-NOV 24 up 0.03$/bbl at 0.92$/bbl
  • Brent DEC 24-DEC 25 up 0.03$/bbl at 3.61$/bbl
  • US gasoline crack down 0.3$/bbl at 12.13$/bbl
  • US ULSD crack down 0.1$/bbl at 21.32$/bbl