Oil Summary at European Close: Crude Strengthens

Crude prices are stronger today after a decline driven by unexpected US crude inventory build. However, uncertainty surrounds the strength of US and China oil demand growth.

• Brent OCT 24 up 2.1% at 81.4$/bbl
• WTI SEP 24 up 2.1% at 78.56$/bbl
• The OPEC+ producer group is unlikely to proceed with the planned output boost from Q4, according to SEB analyst Ole Hvalbye cited by Bloomberg.
• The range of oil demand growth estimates for the remainder of 2024 are unusually wide according to Martijn Rats, global commodities strategist at Morgan Stanley speaking with CNBC.
• Talks involving a high-level Israeli delegation, and mediators from the US, Egypt and Qatar meet in Doha today to begin the latest round of talks on reaching a hostages-for-ceasefire agreement with Hamas. Hamas will not participate directly in the talks,
• China's crude oil production in July rose 3.4% from a year earlier to 17.9 million tons, or about 4.22 million bpd according to NBS data out Thursday.
• Seaborne Russian crude exports averaged 3.3Mbd in July (-300kbd m/m) according to Kpler.
• Arbitrage inflows of heavy Canadian crude to China via the TMX pipeline have risen as the grade remains competitive over its Middle Eastern competitors, Platts said.
• Goldman sees signs of demand growth slowdown in the oil market which adds downside risks for oil into next year according to Goldman Sachs’ head of oil research Daan Struyven speaking to CNBC this week.