Written Commentary
Source of both tables: Bloomberg
Market Update
- Market jumped yesterday after OPEC+ meeting resulted in a continuation of the planned increase in production of 400k barrels a day for the month of October
- This announcement disappointed the market that was expecting an increase of production higher than the planned production. Expectations are that demand will outstrip supply in October, with OPEC+ forecasting demand will outstrip supply by 1.2M barrels for October and 900k barrels for November.
- Demand for energy products remains strong in China with some having to switch to alternative products as a result of higher natural gas and coal prices. China’s private refiners waiting for quotas after power crisis.
- There is still hope that OPEC+ will increase production further later this month in order to stifle the current shortfall.
- Meanwhile Iran reiterated that the release of frozen funds would be the best way to get talks on the nuclear deal and sanctions restarted.
Oil Data Release
API
Crude Exp +0.4
Distillates Exp -0.8
Gasoline Exp -0.3
Macro Data Release
- Trade balance Exp -$70.8Bln Prev -$70.1Bln
Contact the ADMISI Energy Desk
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Phone: +44 (0)20 7716 8550 Email: energy.desk@admisi.com
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ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
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