The October (October) Oil (CLV25) rises today +0.99 (+1.58 %), and RBOB gasoline rose in October (RBV25) +0190 (+0.95 %).
Oil and raw gasoline prices rise today due to the weakness of the dollar. Also, the escalation of geopolitical risks in Europe gave oil prices a boost after Poland shot down the drones that expressed their lands during the last air strike in Russia on Ukraine, describing it as a “aggressive work”. Crude prices today, despite the EIA’s dumpling report, which showed unexpectedly weekly raw supply and gasoline stocks more than expected.
Edge geopolitical risks in Europe and the Middle East optimistic about crude prices. Geopolitical tensions in Europe escalated today after Poland shot down Russian drones that expressed its lands in Russia’s latest attacks on Ukraine. Also, on Tuesday, Israel launched a blow to Doha, Qatar, targeting Hamas High Command. Qatar said that the attack by Israel violated international law and threatens to expand the conflict in the Middle East, a source of about a third of the global oil supplies.
The crude prices also have support after OPEC+ on Sunday’s approval to raise its raw production by 137,000 barrels per day, starting in October. This is less than 547,000 barrels per day. The group’s increase decided to increase production in September and August. OPEC+ also said that restarting the remaining 1.66 million barrels of raw production on the day it had been exposed to in “advanced market conditions”.
The decrease in Russian crude production is the tightening of global oil supplies and supports prices. Ukrainian drones and missiles on Russian refineries were purified to 5.09 million barrels per day in the first 27 days of August, which is the lowest monthly average in more than 3.25 years.
Crude prices support fears that the ongoing war in Ukraine may lead to additional sanctions on Russian energy exports, which reduces global oil supplies. President Trump today told European Union officials that he is ready to manufacture a new tariff for India and China, and senior Russian crude importers, in an attempt to make Russia end the war in Ukraine, but only if the European Union countries do so as well.
The declining factor of crude was a procedure on Monday by the Kingdom of Saudi Arabia to reduce the prices of all its crude scores today by one dollar per barrel for buyers in Asia for delivery in October, a sign of weak demand for crude and reduce more severe expectations of 50 cents a barrel.
The increase in crude oil that has been held all over the world on the dumping tankers of oil prices. Vortexa reported on Monday that crude oil stored on carriers was fixed for at least seven days increased by +6.8 % w/W to 77.69 million barrels in the week ending September 5.
Fears related to OPEC production are negative for crude prices as Opec+ production enhances production for two years, which gradually leads to a total of 2.2 million points per day of production by September 2026. OPEC+ owns 1.66 million barrels per day to 28.5 million years.
Today’s weekly EIA report was landfill and products. EIA’s crude stocks unexpectedly increased +3.94 million barrels, equivalent to -1.4 million barrels. Also, EIA’s gasoline supplies increased by +1.5 million barrels, higher than +500,000 BBL expectations. In addition, EIA +4.7 million barrels have increased to 8 months, much higher than brown +24000 BBL. On the positive side, raw supplies in Cushing, the future delivery point of WTI, decreased by -365,000 BBL.
The environmental impact assessment report showed today that (1) American crude oil lists as of September 5 were at 3.2 % less than the seasonal average for a period of 5 years, (2) gasoline stocks were less than -0.6 % than an average of 5 seasonal years, and (3) distillation stocks were of -10.4 % than the seasonal average 5 years. US crude oil production increased in the week ending 5 by +0.5 % w/s to 13.495 million barrels per day, modestly less than 13.631 million barrels per day published in the week 12/6/2024.
Baker Hughes said last Friday that the number of American oil platforms active in the week ending September 5 rose by +2 to 414 platforms, slightly higher than the level of 410 out of 410 platforms from August 1. Over the past 2.5 years, the number of US oil platforms has decreased sharply from the highest level in 627 years from 627 platforms in December 2022.
On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
