Oil End of Day Summary: WTI Sinks on Poor Demand

WTI continued to be down on the day during US hours, as a weaker demand outlook, particularly from China, provided downside to prices. WTI is on track for its lowest close since late July.

• WTI DEC 23 down -4.1% at 77.53$/bbl
• Chinese crude imports totalled 48.97mn metric tonnes in October or 11.53mbpd according to customs data – up from 11.13mbpd in September.
• The API oil inventory data is due for release today at 16:30 ET. The EIA Weekly Petroleum Status Report tomorrow will be delayed by a week due to a planned systems upgrade.
• The EIA’s forecasts Brent spot price to average $90.27/b in Q4 and $93.24/b across 2024, up 1.8%, according to its Short-Term Energy Outlook.
• US crude oil supply is expected to rise to 13.15m b/d in 2024, compared to 12.90m b/d in 2023.
• Saudi Arabia and Russia are next month likely to extend the oil output cuts according to UBS.
• OPEC Sec Gen comments: OPEC+ will take appropriate measures at the next meeting. Oil demand is set to grow more than 2mbpd in 2024. Oil demand continues to rise significantly. We’re still positive, robust on demand. Buyers in India and China will look for cheaper barrels to buy. Barrels will flow to where demand centres are.
• OPEC has made progress on talks to expand its candidacy which may be taken up by Brazil, according to Argus citing OPEC secretary general Haitham Al-Ghais.
• The US DOE is looking to buy 3mbbl of sour crude oil for the Strategic Petroleum Reserve for delivery in January into the Big Hill SPR site.
• A record number of supertankers are headed to the US to load crude according to Bloomberg vessel tracking which counted 48 vessels bound for the country in the coming three months – the most in six years.
• NNPC has launched a new grade of crude oil called Nembe, according to Reuters.
• Market participants this week have voiced different projections on global oil demand growths for next year ranging from 1mbpd to above 2mbpd.
• Russia’s exports of crude are at their highest rate for four months, according to Bloomberg.
• US crude and condensate exports rose to 4.16mbpd in September, up from 4.14mbpd in August, US Census Bureau data showed.
• ENI and Repsol want to boost liftings and production of Venezuelan oil but are limited by poor infrastructure and concerns of sanction re-imposition, according to Platts.
• The boost in Venezuela’s oil output is likely to be limited by the easing of sanctions, Patti Leigh, VP of crude supply and trading at Chevron, said at the Argus European Crude Conference in London, reported by Bloomberg.
• The inclusion of WTI into the Dated Brent oil benchmark has ‘gone smoothly’, according to ICE, Reuters reports.