Oil End of Day Summary: Crude Strengthens

Crude prices are stronger today after a decline driven by unexpected US crude inventory build, a lack of progress in Gaza ceasefire talks, and gains in US equities.

• WTI SEP 24 up 1.6% at 78.21$/bbl
• The OPEC+ producer group is unlikely to proceed with the planned output boost from Q4, according to SEB analyst Ole Hvalbye cited by Bloomberg.
• The range of oil demand growth estimates for the remainder of 2024 are unusually wide according to Martijn Rats, global commodities strategist at Morgan Stanley speaking with CNBC.
• Talks involving a high-level Israeli delegation, and mediators from the US, Egypt and Qatar meet in Doha today to begin the latest round of talks on reaching a hostages-for-ceasefire agreement with Hamas. Hamas will not participate directly in the talks,
• Production of medium sour Mars Blend oil from the Gulf of Mexico should get a boost in coming months as projects from Chevron and Shell ramp up, Bloomberg said.
• China's crude oil production in July rose 3.4% from a year earlier to 17.9 million tons, or about 4.22 million bpd according to NBS data out Thursday.
• Seaborne Russian crude exports averaged 3.3Mbd in July (-300kbd m/m) according to Kpler.
• Arbitrage inflows of heavy Canadian crude to China via the TMX pipeline have risen as the grade remains competitive over its Middle Eastern competitors, Platts said.
• Pemex has reached a deal with oilfield-services provider CME to drill in the Gulf of Mexico as it looks to revive its floundering production, World Oil said.
• Goldman sees signs of demand growth slowdown in the oil market which adds downside risks for oil into next year according to Goldman Sachs’ head of oil research Daan Struyven speaking to CNBC this week.