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OIL: Crude Weighs Libya Outgage Against Soft China Demand and OPEC Supply

OIL

Brent crude markets are holding steady with disruption to Libyan output set against continued concerns for China demand with recent data still suggesting a sluggish economy. The expectation of additional supply from OPEC from Q4 and possible switch to a market surplus is also adding downside price pressure.

  • Libya’s NOC declared a force majeure on key oil field El-Feel amid a widening shutdown of production, Bloomberg said. Oil exports at major Libyan ports were halted Sep. 2 with production curtailed across the country, six engineers told Reuters.
  • The US is putting together further sanctions on Venezuela following its disputed election results and arrest warrant for an opposition leader. The US had eased oil and gas sanctions last year on the condition of free and fair elections, but had reinstated them after popular figures were not allowed to run as candidates.
  • Two oil tankers were attacked on Monday in the Red Sea off Yemen but did not sustain major damage. The Iran-backed Houthis claimed responsibility.
  • Diesel and gasoline cracks weakened yesterday driven by healthy supply and ongoing concern for soft demand despite the upcoming refinery maintenance season.
    • Brent NOV 24 down 0.2% at 77.33$/bbl
    • WTI OCT 24 up 0.7% at 74.05$/bbl
    • Brent NOV 24-DEC 24 down 0.04$/bbl at 0.75$/bbl
    • Brent DEC 24-DEC 25 down 0.1$/bbl at 3.15$/bbl
    • US gasoline crack up 0.1$/bbl at 12.84$/bbl
    • US ULSD crack up 0.1$/bbl at 21.95$/bbl

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