OIL: Crude Ticks Higher on Hurricane Francine Impact Ahead of IEA Report

Crude markets are ticking higher with support from better risk sentiment and concerns over the impact of Hurricane Francine after Brent reached a low of $68.68/bbl earlier this week. Prices are still net down of the week amid oversupply risks and bearish sentiment surrounding global demand. Focus will be on the IEA monthly report today for further indications of the future balance.

• Hurricane Francine made landfall in Louisiana today. About 670kbpd or 39% of Gulf of Mexico oil production has been shut because of the storm, according to US Bureau of Safety and Environment Enforcement and around eight land-based refineries may be impacted.
• Saudi Aramco will supply about 44mbbl of crude oil to China in October, according to Bloomberg up from about 43mbbls in September.
• EIA data yesterday showed US crude inventories rose 0.83mbbl in line with expectation driven by a rise in imports and drop in exports.  Cushing stocks however continued to fall while refinery utilisation fell less than expected.
• US crack spreads remain weak as EIA showed both gasoline and distillate demand were lower as the holiday season finished.
  • Brent NOV 24 up 1.4% at 71.6$/bbl
  • WTI OCT 24 up 1.4% at 68.22$/bbl
  • Brent NOV 24-DEC 24 up 0.05$/bbl at 0.49$/bbl
  • Brent DEC 24-DEC 25 up 0.24$/bbl at 1.36$/bbl
  • US gasoline crack down 0.1$/bbl at 12.35$/bbl
  • US ULSD crack up 0$/bbl at 20.71$/bbl