OIL: Crude Ticks Higher Amid China Rate Cuts and Softer USD

Crude ticks higher with support from a slightly softer US dollar, China rate cuts and Canadia wildfires and amid further drone attacks on a Russian refinery. Brent crude had fallen to a low of $82.56/bbl on Friday on China weakness and a stronger dollar and renewed Gaza ceasefire hopes.

• The PBoC unexpectedly cut the 7-day repo rate, 1-year & 5-year LPRs by 10bp today to support the economy after Q2 GDP disappointed and the Third Plenum meeting took place.
• President Biden is standing aside from the 2024 election campaign. VP Harris is seen as less supportive of the sector and may be more likely to challenge its environmental record and has been more critical of fracking than Biden, according to Bloomberg.
• Out of control wildfires in Alberta Canada continue to threaten the oil sands with around 348kbd of output at risk, according to the Alberta Energy Regulator.
• A fire at Rosneft’s Tuapse refinery caused by a Ukrainian drone attack has been extinguished. A total of 75 drones were intercepted and destroyed over Russia on Monday morning.
• Diesel and gasoline crack spreads edge lower to continue a trend on place since July 2 amid healthy supplies and weak demand.
  • Brent SEP 24 up 0.5% at 83.08$/bbl
  • WTI SEP 24 up 0.5% at 79$/bbl
  • Brent SEP 24-OCT 24 down 0.01$/bbl at 1.06$/bbl
  • Brent DEC 24-DEC 25 up 0.07$/bbl at 4.47$/bbl
  • US gasoline crack down 0.2$/bbl at 22.7$/bbl
  • US ULSD crack down 0.1$/bbl at 21.48$/bbl