Oil Summary at European Close: Crude Pulls Back

Oil prices erased earlier gains to be trading lower on the day, likely driven by a rebound in the USD after lower-than-expected ISM manufacturing data.

• Brent OCT 24 down 0.4% at 80.5$/bbl
• WTI SEP 24 down 0.7% at 77.39$/bbl
• US data showed lower than expected ISM manufacturing, falling to 46.8 (cons 48.8) from 48.5 in June. It’s the lowest since Nov 2023. Swaps now fully price in three rate cuts in 2024.
• The New York Times is reporting that according to Iranian officials briefed on the matter, Supreme Leader Ayatollah Ali Khamenei "has issued an order for Iran to strike Israel directly, in retaliation for the killing in Tehran of Hamas’s leader, Ismail Haniyeh,".
• OPEC + did not issue a recommendation at the online session on Thursday according to delegate reports.
• Saudi may raise its September OSP for Asia for the first time in three months according to a Reuters survey.
• The National Hurricane Center has warned about Carlotta becoming a hurricane later today or tonight.
• Libya plans to export 8.8m bbl, or 284k b/d, of Es Sider crude in August, according to an initial loading program compiled by port agents, seen by Bloomberg.
• Venezuela’s oil production by state-owned PDVSA and its foreign partner rose to 993k b/d in July, up 85k b/d on the month, Platts said.
• Crude loadings from three western ports in July fell to its lowest since Dec. 2022, amid improved compliance with OPEC+ targets, Bloomberg said.
• Observed oil shipments from Algeria fell 28% to the lowest level since February, according to Bloomberg.