Oil prices slipped Tuesday morning, with Brent trading at $57.21/bbl as of 9:20 AM UKT, down by 16 cents from the previous settle, while WTI stood at $51.83/bbl at the same time, down by 7 cents from the settle. The WTI-Brent spread narrowed, standing at -$5.46/bbl at the time of writing, 8.5% lower from -$5.97/bbl seen a week ago. .
Meanwhile, Thomson Reuters Oil Research assessed crude oil exports from the Arab Gulf up by 19.4 million barrels (mmbbl) w-o-w from the 6-month low seen in the prior week, to 130 mmbbl, suggesting that the low exports seen earlier were likely outcome of vessel-scheduling. Last week’s increase in exports was driven by higher exports from Saudi Arabia, Iran and the UAE. Saudi exports rose by 18% w-o-w to 50 mmbbl; Iran exports increased by 6.3 million bbl w-o-w currently standing at 17.7 mmbbl, supported by increased demand from Asian buyers who lifted 11 mmbbl last week. UAE shipments sharply increased by 5.6 mmbbl to 17.7 mmbbl with the lion share of the volume heading to South Korea.
A preliminary Reuter’s poll estimated that US crude inventories likely fell by 2.5 mmbbl in the week ending October 20th. Gasoline stocks are estimated to have decreased by 1.5 mmbbl last week, while distillate stocks are expected to fall by 1.9 mmbbl. Refinery utilisation is expected to have increased by 1.3% from 84.5% of total capacity seen in the week prior.
The Oil Research Team
Supply Chain & Commodities Research