Oil Market Summary

OIL Market Summary: Crude moves back positive on the day with OPEC supply reductions and potential China economic support offsetting concerns for a US recession ahead of the expected Fed rate hike this week.

• Brent SEP 23 up 0.7% at 83.29$/bbl
• WTI SEP 23 up 0.9% at 79.41$/bbl
• Russia’s seaborne crude flows from Baltic and Black Sea ports slumped to the lowest in seven months according to Bloomberg vessel tracking as cuts finally filter through.
• The EU has no plans to raise the Russian oil price cap from $60/b, despite Russian crude prices crossing that threshold, according to Energy Intelligence.
• OIL OPTIONS - ICE Brent Sept Option Expiry – Wednesday 26 July 2023 at 19:30BST close
• The API oil inventory data is due for release today at 16:30 ET ahead of the EIA weekly data tomorrow.

REFINING:

• Shell announced a short while ago on Twitter (X) a unit is starting back up at its Pernis refinery – the biggest fuel making refinery in Europe – prompting European cracks lower. European diesel had surged of late because of tighter supplies and a lack of Russian supply this year.
• Brent FCC margin down -1.3$/bbl at 13.57$/bbl
• EU Gasoline-Brent down -2.4$/bbl at 27.46$/bbl
• EU Gasoil-Brent down -1.1$/bbl at 24.21$/bbl

• Shell’s Norco refinery north of New Orleans is to shut multiple units for work in late September according to Bloomberg sources. The refinery can process approximately 250kbpd on medium sweet crude.
• Asian refiners have reduced crude liftings from Saudi Arabia, despite seasonal maintenance coming to an end in the month, after Aramco raised July-cargo prices.
• Chinese independent refineries are likely to keep importing fuel oil for use as a feedstock for the remainder of 2023, according to S&P Global Commodity Insights.