Oil End of Day Summary: WTI Lowest Since Jan

WTI has plunged to its lowest level since January as economic concerns outweigh a larger-than-expected US crude draw. WTI has fallen through its first support level.

• WTI OCT 24 down 2.2% at 71.59$/bbl
• SUP 1: $71.67 - Low Aug 5 and the bear trigger
• EIA Weekly US Petroleum Summary - w/w change week ending Aug 16: Crude stocks -4,649 vs Exp -1,968, Crude production +100, SPR stocks +636, Cushing stocks -560
• Much of oil’s geopolitical risk premium has unwound on hopes of a Gaza ceasefire deal and with no retaliatory strike by Iran so far.
• Israeli Defence Minister Yoav Gallant claims that Hamas' "Rafah division has been defeated. Over 150 underground tunnels have been destroyed [along the corridor]."
• The UK Maritime Trade Operations (UKMTO) office has reported that a commercial ship in the Red Sea has come under attack and is currently not under command (i.e. has lost the ability to sail or steer) after being hit with three projectiles.
• The US has drafted a list of 60 Venezuelan government officials and family members who could be sanctioned, according to Reuters sources.
• The gain in U.S. crude oil exports should slow in 2024 after years of strong growth but could see a near term boost, according to Reuters.
• European crude imports are arriving at their highest pace of the year in August according to Vortexa, reflecting higher summer demand.
• Goldman Sachs warns that Brent crude could fall below $70/bbl if Chinese demand weakness persists in a recent research note.
• BP sees limited scope for OPEC+ to boost output amid downside price pressure from increasing supply from the US, Brazil and Guyana according to Bloomberg.
• MNI COMMODITY WEEKLY: End of Summer Demand Set to Weigh on U.S. Refiners: https://enews.marketnews.com/ct/x/pjJscVPdkO8I6a5hKxh-HA~k1zZ8KXr-kA8x6mUD5GnptIPjO1OcQ