Oil Summary at European Close: Crude Slides Despite US Draw

Crude maintains earlier losses despite a slightly larger than expected draw in US inventories and the decision by OPEC+ to maintain its current policy. Downside pressure comes from economic concerns due to the potential impact on demand of potentially higher for longer interest rates.

• Brent DEC 23 down -3.4% at 87.8$/bbl
• WTI NOV 23 down -3.4% at 86.2$/bbl
• The OPEC+ Joint Ministerial Monitoring Committee did not recommend any policy changes at its meeting on Wednesday, the producer group said.
• EIA Weekly US Petroleum Summary - w/w change week ending Sep 29: Crude stocks -2,224 vs Exp -171, Crude production 0, SPR stocks +300, Cushing stocks +132
• Crude inventories in ARA region fell 5mn bbls or 9.2% in week ended September 29 to 49.3mn bbls according to Genscape.
• JP Morgan maintains an end of year crude oil target of 86$/bbl amid demand destruction due to high prices.
• LIBYA RAISES ES SIDER CRUDE OSP FOR OCTOBER TO DATED +$1/BBL - bbg
• Russia is working with Kazakhstan on supplying oil via the CPC pipeline and is not concerned it will be affected by geopolitics, Russian Energy Minister Nikolai Shulginov said according to Interfax.
• Tengizchevroil, Kazakhstan’s largest oil producer, will face a six-month delay in its expansion beyond the initial June 2024 target, according to Reuters.
• MNI COMMODITY WEEKLY: JMMC Meeting Yields Expected Result but Saudi/Russia Flows Show Signs of Growth - Full piece here: https://enews.marketnews.com/ct/x/pjJscQCPkuoI6ag1IxB2Sw~k1zZ8KXr-kA8x6nHXZOiptIPjO1OcQ