Oil Summary at European Close: Crude Rallies

Oil prices have rallied during the day although have softened from earlier highs following Iran’s Foreign Minister calls for an oil embargo against Israel. Prices received support overnight after positive economic data and record crude processing rates in China. Higher than expected draws in US stocks are also supportive.

• Brent DEC 23 up 1.4% at 91.19$/bbl
• WTI NOV 23 up 1.6% at 88.05$/bbl
• The Iranian Foreign Minister Hossein Amirabdollahian calls for a “full and immediate boycott” of Israel by Muslim countries, the expulsion of Israeli ambassadors and an oil embargo against Israel, according to statement by ministry on Telegram.
• OPEC is not planning to hold an extraordinary meeting or to take immediate action following calls by Iran for Muslim countries to impose an oil embargo on Israel, according to Reuters’ sources.
• Concern for an escalation in the conflict in Israel has increased after the Jordan leg of US President Biden’s trip was cancelled due to an explosion at a Gaza hospital.
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 13: Crude stocks -4,491 vs Exp -413, Crude production 0, SPR stocks 0, Cushing stocks -758.
• China refinery throughput hit another record in September at 63.62 million metric tons last month or 15.48mn bpd, up from the prior record in August of 15.23mn bpd according to National Bureau of Statistics (NBS) data.
• Venezuela could increase its oil production by 200k b/d within six months should it finalise a deal on sanctions relief with the US, according to Rystad energy.
• Crude inventories in the ARA region declined by 217kbpd in the week ending 13 October to 51.2mn barrels, Genscape data showed.
• Iraq’s crude oil production in September edged slightly higher to 4.73mbpd, up from 4.71mbpd in August according to according to the Iraq Oil Report.
• Calls from Iran for Muslim countries stop exports of oil to Israel are likely to have little impact on flows to the country, based on Kpler dated cited by Bloomberg.
• MNI Commodity Analysis: https://enews.marketnews.com/ct/x/pjJscQDcxO4I6ag0Ik9xSA~k1zZ8KXr-kA8x6nHDsWmptIPjO1OcQ
• MNI COMMODITY WEEKLY: China Wields Power Over Putin Charm Offensive this Week. – Full piece here: https://enews.marketnews.com/ct/x/pjJscQDcw-QI6ag0IRhyTw~k1zZ8KXr-kA8x6nHDsKsptIPjO1OcQ