Oil End of Day Summary: Crude Falls

Crude is heading for US close trading lower today as markets take stock of possible US rate cuts and weaker Chinese economic data.

• WTI AUG 24 down 0.5% at 79.7$/bbl
• Venezuela’s National Assembly approved extending the contract for the Petroindependencia joint venture between state-owned PDVSA and Chevron until 2050, according to Bloomberg.
• China imports of crude oil from Russia and Saudi Arabia fell in June but shipments from Malaysia were up near record levels, according to General Administration of Customs data released over the weekend.
• US crude production is holding at a record high of 13.3mb/d in July despite a steady decline in the number of drilling rigs.
• Alberta’s out-of-control wildfires greater than 10 hectares in size are within 10km of around 388k b/d of oil production and 13.4 boe/d of gas output, Bloomberg said, citing government data.
• Hungary and Slovakia plan to raise the issues of blocked Russian Lukoil oil cargoes transiting Ukraine via the Southern Druzhba pipeline on Monday.
• Indonesia’s Pertamina has added Russian crude grades to its September purchase tender according to Reuters sources.
• Nigeria plans to ship 100k b/d of Akpo crude in September, the highest since June, Bloomberg said, citing the loading programme.
• Oil markets are currently tight but will likely be in surplus next year according to Morgan Stanley, causing Brent prices to fall into the high to mid-$70’s range.
• OPEC exports are down this month on already weak levels in June helping to tighten markets according at a UBS note.