OIL: Oil End of Day Summary: Crude Makes Gains

WTI has reversed the losses from yesterday to be back around the Aug. 20 close. Falling US inventories and growing talk of a delay to OPEC cut unwinding weigh against US and Chinese economic weakness.

• WTI OCT 24 up 1.6% at 73.11$/bbl
• In a Washington Post opinion column, David Ignatius writes that, according to unnamed US officials, "U.S. officials think Hamas leader Yehiya Sinwar,[...] favors the deal.[...]But Hamas seems to be playing a waiting game, probably in the hope that Iran or Hezbollah will attack Israel — and thereby transform the battlefield."
• BNEF forecasts that US oil production will continue to rise in 2024 and beyond. BNEF sees US oil production in 2026 at 14.12m b/d, up 240k b/d in 2025.
• Suncor’s Firebag oil-sands site produced around 180.5k b/d in July, the lowest output since June 2022, Bloomberg said. This compares to 233.5k b/d in June.
• OPEC has received updated compensation plans from Iraq and Kazakhstan for their overproduction in the first seven months of this year, OPEC said.
• More sluggish growth in China’s economy is a significant bearish concern for oil markets, including for US crude exports, Platts said in its Oil Market Podcast.
• Crude storage capacity utilisation rates among Shandong Independent refineries was unchanged on the week at 43.8% for the seven days to Aug. 23, OilChem said.