US Daily Oil Summary: SPR Sees 200k bbl Fall

The US Strategic Petroleum Reserve declined by 200kbbls to 351.3mn barrels as of 29 September, DOE data showed.

• US refinery margins as measured by the 3-2-1- crack spread have fallest to their lowest level since January 2022, according to Bloomberg. US 321 crack down -2.6$/bbl at 21.38$/bbl.
• The API oil inventory data is due for release today at 16:30 ET
• The Permian basin in Texas and New Mexico will continue to grow shale oil for several years according to Occidental Petroleum CEO Vicki Hollub.
• US retail gasoline prices dropped 1.8% to $3.598/gal in the week ending Sep. 29, according to the EIA.
• US diesel exports to Brazil nearly doubled from August to September up to a four-month high of 79kbpd according to Bloomberg citing Kpler data.
• After climbing off cycle lows since the open, Treasury futures gap back lower after higher than expected JOLTS Job Openings (9.610M vs. 8.808M est, 8.827M prior). Still inside the session range, TYZ3 trades 107-00.5 (-10) vs. 106-29.5 low at the moment.
• The greenback remained strong during US hours, underpinned by new by cycle highs for the belly and longer-end of the US curve. Bear steepening of US yields supported the USD Index through to resume it's medium-term uptrend off the July lows, putting USD/JPY briefly above Y150.00.
• Conservative Republican House Representative Matt Gaetz (R-FL) yesterday submitted a “motion to vacate” the Speaker’s chair – a bid to oust House Speaker Kevin McCarthy (R-CA) - in response to McCarthy’s decision to pass a bipartisan bill to avert a government shutdown. If McCarthy fails to gather enough support to table the resolution, and prevent a House vote, he will likely be forced to lean on Democrats to keep his gavel.