Oil Summary at European Close: Crude Falling

Crude front month has declined further on the day with demand concerns weighed against tight supplies and risks from the conflict in Israel despite the current limited impact on oil flows. The risk of higher for longer interest rates have been weighing on oil markets this month with focus this week on the US September CPI data due out on Thursday.

• Brent DEC 23 down -0.9% at 87.36$/bbl
• WTI NOV 23 down -0.9% at 85.59$/bbl
• Strong crude curve backwardation is reflecting the tight supply concerns although prompt spreads eased back after an initial surge yesterday while the longer dated spreads held onto the earlier gains.
• Venezuela and the US have progressed in talks that may allow an additional foreign firm to take Venezuelan oil in return for debt repayment according to Reuters sources.
• Saudi Aramco has notified at least four North Asian buyers that it will supply full contractual volumes of crude oil in November, sources with knowledge told Reuters.
• Chinese onshore crude inventories have been drawing lower since late July according to Vortexa figures.
• Russia’s Putin and Iraqi PM Mohammed al-Sudani met in Moscow today ahead of the Russian Energy Week forum they are both set to attend tomorrow.
• JP Morgan maintains its Brent year end price target of $86/bbl despite higher geopolitical tensions in the Middle East.