Oil Market Summary

Crude was down marginally after the updated weekly EIA petroleum data showed a smaller than expected crude draw with an unexpected drop in refinery utilisation. Gasoline and distillate stocks have gained slightly after small draws with weekly implied demand just slightly higher.

• EIA: Crude stocks -600 vs Exp -2,123
• Gasoline stocks -786 vs Exp -1,591
• Distillate stocks -245 vs Exp -822
• Brent SEP 23 down -0.2% at 83.45$/bbl
• WTI SEP 23 down -0.3% at 79.41$/bbl
• A total of 570mbbls of open Sep23 Brent options positions are currently due to expire at the futures close today. Current open interest is 309k for calls contracts and 261k for puts.
• Saudi Arabia is expected to extend the 1mbpd oil supply cut again into September according to a Bloomberg survey. Fifteen of 22 traders, analysts and refiners surveyed by Bloomberg predict it will continue into September.
• Russia will increase its crude exports in September on the back of higher refinery maintenance according to Reuters sources. An easing of Spring maintenance has allowed exports to be diverted to domestic refineries at present to produce oil products which have mostly seen their exports boosted as a result.
• China added 2.1 mn bpd to commercial or strategic stockpiles in June according to Reuters calculations leaving near record stockpiles to tap into in the latter half of the year.
• Oil prices could break out to the upside of the recent range due to peaking US interest rates, OPEC+ supply cuts, and Russia's export cuts according to Bank of America.
• Nigeria’s Forcados oil terminal has halted loadings after briefly resuming July 25, according to a report seen by Bloomberg as it still tries to repair a leak.
• Gasoil AUG 23 up 3.1% at 831.5$/mt
• EU Gasoil-Brent up 2.2$/bbl at 26.84$/bbl
• US ULSD crack up 2.5$/bbl at 39.43$/bbl