Oil End of Day Summary: Crude Extends Losses

Crude has hit its lowest level since December as the market weighs the impact of a discussed delay to OPEC+ cut unwinding. The potential return of Libyan flows is also adding downside.

• WTI OCT 24 down 1.3% at 69.43$/bbl
• OPEC+ is close to an agreement to delay its unwinding of cuts due to begin in October, according to delegates speaking to Bloomberg.
• The 600k bbl oil tanker Front Jaguar was loading at Libya's Brega port Sep. 4, engineers told Reuters and Kpler data showed.
• Saudi Arabia, Russia and the US reduced crude/condensates exports in August m/m, pushing their combined share of global seaborne exports to a multiyear low: Vortexa.
• Surveys of EIA US crude storage change: -0.525m bbl (Bloomberg), -0.7m bbl (WSJ), -1.0m bbl (Reuters).
• US crude exports, including condensate derived wholly from natural gas, fell to 4.19m b/d in June, Bloomberg said.
• ARA crude inventories rose by 0.5% w/w to August 30 to 54.3m bbl: Genscape.
• Nigeria is set to cut exports of Bonny Light crude to 184k b/d in October.
• Goldman Sachs sees the latest oil price selloff as “large relative to the fundamental news” with room for financial demand to recover.
• UBS says oil prices are likely to stay volatile in the near term but are expected to recover from current levels, according to Reuters.
• Oil prices could be near a low of around $70 to $72/bbl on hope that OPEC+ could defend the range and with technical support since early 2023: Citigroup.
• Oil prices to stay soft in autumn, averaging $80/b in December and lower in 2025: Platts
• AI will ultimately help drive down oil prices over the next decade, Goldman Sachs said,
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