Oil Summary at European Close: Crude Weighs OPEC Unwind Delay

Oil markets are weighing the possibility and impact of headlines suggesting plans to delay the OPEC+ cut unwinding which has provided price support today. The potential return of Libyan flows is also adding downside.

• Brent NOV 24 down 0.5% at 73.38$/bbl
• WTI OCT 24 down 0.6% at 69.94$/bbl
• OPEC+ is close to an agreement to delay its unwinding of cuts due to begin in October, according to delegates speaking to Bloomberg.
• Libya’s central bank believes that an agreement can be reached soon that will allow the country’s oil output to resume to normal levels after a political dispute cut it sharply.
• The 600k bbl oil tanker Front Jaguar was loading at Libya's Brega port Sep. 4, engineers told Reuters and Kpler data showed.
• Saudi Arabia, Russia and the US reduced crude/condensates exports in August m/m, pushing their combined share of global seaborne exports to a multiyear low: Vortexa.
• US crude exports, including condensate derived wholly from natural gas, fell to 4.19m b/d in June, Bloomberg said.
• ARA crude inventories rose by 275k bbl or 0.5% w/w for the week ended August 30 to 54.3mn bbl: Genscape.
• Nigeria is set to cut exports of Bonny Light crude to 184k b/d in October.
• Goldman Sachs sees the latest oil price selloff as “large relative to the fundamental news” with room for financial demand to recover.
• UBS says oil prices are likely to stay volatile in the near term but are expected to recover from current levels, according to Reuters.
• Oil prices could be near a low of around $70 to $72/bbl on hope that OPEC+ could defend the range and with technical support since early 2023, according to Citigroup.
• MNI COMMODITY WEEKLY: OPEC+ Considerations Mount as October Nears: https://enews.marketnews.com/ct/x/pjJscVKNwekI6a5gckpySw~k1zZ8KXr-kA8x6mVX8ChptIPjO1OcQ