Oil End of Day Summary: Crude Moderates Losses

Crude markets are ending the day lower but have moderated losses as better than expected US data assuaged some concerns of a looming recession

• WTI SEP 24 down 0.8% at 72.94$/bbl
• Services PMI revised down to 55.0 (flash and cons 56.0) for a modest decline from 55.3 in June.
• The increased possibility of another retaliatory Iranian attack on Israel and further escalation in the Middle East could limit downside moves, although the market may need to see tangible supply disruption before it becomes a major driver.
• US crude oil inventories are expected to have risen by 0.9m bbl in the week to Aug. 2, according to an initial Reuters survey of four analysts.
• Chevron said on Sunday it was removing non-essential staff from its Blind Faith and Petronius facilities in the Gulf of Mexico ahead of Hurricane Debby but production would not be impacted.
• Saudi Aramco has raise its official selling prices (OSPs) to Asia less than expected amid weak refining margins in Asia while prices to other regions were cut.
• Libya’s biggest field, the ~270,000 bpd Sharara, has halted production on Monday according to Bloomberg sources.
• Global crude floating storage on tankers stationary for at least seven days fell to 56.66mn bbls as of August 2, down 31% from 82.05mn bbls on July 26 according to Vortexa.
• The average July 2024 price of Urals crude for the purpose of calculating the mineral extraction tax on oil is $74.01/b, the Russian Economic Development Ministry said, cited by Interfax.