October 16, 2024 15:24 GMT
OIL: Oil Summary at European Close: Crude Extends Losses
OIL
After a brief rebound, crude markets are extending losses following the continued drop in geopolitical risk premium linked to Israel-Iran tensions, coupled with a downward revision in demand outlooks.
- Brent DEC 24 down 0.9% at 73.61$/bbl
- WTI NOV 24 down 1% at 69.84$/bbl
- A resumption of Libyan crude output has led to a surplus in crude supplies in Europe, forcing competing sellers to cut their prices, according to Reuters sources.
- India’s crude imports from Russia rose 11.7% m/m in September to 1.9mn bpd – around 40% of its overall imports according to tanker tracking data seen by Reuters.
- ARA crude inventories rose 2.5mn bbls or 4.8% w/w in the week ended October 11 to 54.9mn bbls according to Genscape.
- Equinor sold one VLCC of Norway’s Johan Sverdrup crude for November loading to Unipec according to Bloomberg sources.
- Iranian authorities have started efforts to contain an oil leak from subsea pipelines four miles from Kharg island in the Persian Gulf, the Tasnim news agency reported.
- Angola is set to export 1.12mb/d of crude in December, according to Bloomberg based on a preliminary loading schedule.
- Crude loadings from Guyana are planned at 20m bbl, or 645k b/d in December, according to Bloomberg, citing loading programmes.
- If oil prices remain around $70/bbl to $80/bbl, North American oil drillers are expected to boost daily crude and condensate output by 2mb/d by the end of the decade, according to Enverus.
- Sinopec is advancing development of the Jiyang shale oil pilot project in east China which has 1.73bn tons of prospective reserves, according to Reuters.
- A small oil market deficit of 200kb/d is expected in H1 2025 even if voluntary OPEC+ cuts are scaled back, according to Standard Chartered.
- MNI COMMODITY WEEKLY: European Refining Facing Mounting Pressure: Full piece here: https://enews.marketnews.com/ct/x/pjJscVXalLkI6a41IRB_Gg~k1zZ8KXr-kA8x6mSCJXxptIPjO1OcQ
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