OIL END OF DAY SUMMARY: Crude Extends Gains on OPEC+ Cuts

Crude extends gains as Saudi and Russia production cuts provide upward support to oil markets ahead of tomorrow’s virtual OPEC+ JMMC Meeting.

• Brent OCT 23 up 1.6% at 84.5$/bbl
• WTI SEP 23 up 1.8% at 80.89$/bbl
• Saudi Arabia announced to extend its 1mbpd voluntary production cut until end-September, while leaving the door open to “extend” and/or “deepen” them. Following announcement, Russia’s Novak has said Russia will cut oil exports by 300kbpd in September, down from a voluntary cut commitment of 500kbbd in August.
• Key members of OPEC+ are due to “assess market conditions” in the online meeting on Friday 2pm Vienna time. Little in the way of recommended policy change is expected from the event, with the market more hinged on Saudi/Russia voluntary cut intent this week.
• US crude exports to Asia are estimated to rise to around 2.2mbpd this month, a new record.
• Libya plans to export 31.41m bbl of crude in August, equivalent to 1.01mbpd.
• Venezuela crude production rose to 843,700 bpd including condensates and NGLs, up from 806,300 bpd in June.
• The US remains confident that the G7 price cap on Russian oil is working to squeeze Russian oil revenues, despite the recent rise in prices for Russian oil, acting Assistant Secretary for Economic Policy at the US Treasury Official Eric Van Nostrand said.
• China’s oil demand growth is forecast to grow slower in Q4 at 940kbpd, compared with 1.24mbpd in Q3 according to CNPC.
• Crude oil throughput in Chinese refineries was 65.89m mt in July, a rise of 3.99m mt on the month, according to OilChem.
• August oil loadings from Russia’s Black Sea port of Novorossiisk are predicted to fall to 2.32m tonnes, down from 2.4m tonnes in July, according to Reuters.