OIL: Oil Summary at European Close: Crude Falls Back on Week

Crude futures have fallen sharply in the European afternoon, putting Brent down 0.3% on the week. Expectations of OPEC+ increasing output from October will offset any drawn-out cuts in Libya.

• Brent OCT 24 down 1.4% at 78.83$/bbl
• WTI OCT 24 down 2.9% at 73.71$/bbl
• OPEC+ is set to proceed with its plans to bring barrels back to the market from October according to six Reuters sources inside the group, prompting the latest crude sell off.
• However, Comerzbank still expects OPEC+ to postpone its cut unwinding plan.
• US confirmed that the economy is not slipping into recession as some fear with 2Q GDP revised up to 3.0%, from advanced estimates of 2.8% with the US consumer spending a main driver.
• Saudi Aramco may cut the Arab Light OSP to Asia by $0.85/bbl in October, according to Bloomberg.
• Recent supply disruptions in Libya, coupled with three consecutive weeks of Cushing stock draws have worked in favour of light sweet grades, Vortexa said.
• Exports of Mexican crude fell to a four-month low in August of 806k b/d.
• Brent oil price forecasts for 2024 have been lowered to an average of $82.86/bbl due to weak fuel demand in China and rising inventories amid returning OPEC supply, according to a Reuters poll.
• Widespread power outages in Venezuela are impacting PDVSA’s 146,000-barrel-per-day El Palito refinery.
• The Czech Republic will cope without Druzha oil flows according to Czech energy security envoy Vaclav Bartuska on Friday.
• An increasingly tight market due the drop in Libya oil production and Kashagan maintenance are boosting prices for Caspian oil grades in the Med, Reuters said.
• Exports of Brazilian crude rose by 3.6% to 1.489m b/d in August.