US Weekly Oil Summary: Record Production and Rig Count Rise

US weekly oil production rose to a record high of 13.2m b/d in the week ending Oct. 6, according to EIA data.

• The increased production, coupled with falling exports, helped US stocks to also climb on the week. The EIA Weekly US Petroleum Summary for the week ending Oct 6 showed Crude stocks up by 10.176m bbl compared to expectations of a 431k decline.
• Meanwhile, Total US rig counts saw their first week on week rise since Sep. 15, according to the weekly Baker Hughes US Oil and Gas Rotary Rig Count Data, up 3 to 622.
• US gasoline, diesel and jet fuel demand has or is about to reach its peak according to US refiner Phillips 66 and refineries are expected to change output slates in response.
• The Biden administration has targeted two tankers and their owners with sanctions for being in breach of the G7 oil price cap of $60/bbl. The sanctioned entities were Turkey-based Ice Pearl Navigation SA, owner of the Yasa Golden Bosphorus, and UAE-based Lumber Marine SA, owner of the SCF Primoyre.
• USD: Despite some early weakness, US PPI, CPI and the UMich inflation expectations data all beating expectations this week have bolstered a strong greenback recovery. The USD index looks set to post a 0.65% advance on the week, remaining underpinned by the waning risk sentiment stemming from the instability and uncertainty in the middle east.
• U.S. CPI rose 0.396% in September and 3.7% from a year ago, the Bureau of Labor Statistics reported Thursday, a tenth higher than markets expected, while core CPI added 0.323% and 4.1% over the month and year, respectively, in line with expectations. The three-month annualized rate for core CPI rose to 3.1% in September from 2.4% the previous month.
• The Labor Department in a separate report said 209,000 people filed for initial jobless claims in the week ending Oct 7, the same as the week before and a tad lower than the 210,000 expected.
• From our latest US Inflation Insight: Combined with September’s strong payrolls report, the latest CPI reading adds additional doubt to the theory that inflation will return to the Fed’s 2% target without further monetary tightening being required.
• CBS News: Sen. Cory Booker says $6 billion in Iranian oil assets is "frozen": "A dollar of it has not gone out" – bbg
• House Majority Leader Steve Scalise (R-LA) yesterday withdrew his candidacy for speaker of the House of Representatives after a short campaign which failed to garner sufficient support.