WTI has sunk today as the geopolitical risk premium associated with Israel's retaliatory strike on Iran evaporated when the former avoided hitting energy and nuclear facilities.
- WTI DEC 24 down 5.8% at 67.64$/bbl
- Israeli missile strikes on Iranian military targets in and around Tehran on the night of 26 October are seen as being on the less-escalatory end of the spectrum of potential responses to Iran's ballistic missile barrage launched against Israel on 1 October.
- US crude oil inventories are expected to have risen by 2.3m bbl in the week to Oct. 25, according to a Reuters survey.
- China’s oil imports from Iran are set to reach a record in October of ~2mn bpd according to Kpler tracking, far higher than the prior record of 1.75mn bpd in August.
- Crude floating storage, stationary for at least 7-days, fell to 55.49m bbl as of Oct. 25 according to Vortexa – down 18% from 67.80m bbl.
- Libya is to load 31.45m bbl, or 1.05 b/d of crude in November, according to a loading programme seen by Bloomberg.
- Angola’s crude loading plan for December is set to rise to 1.09mn b/d according to Bloomberg reports of the final program.
- North Sea Johan Sverdrup crude loadings will climb to 771k b/d in December, according to a loading programme seen by Bloomberg, the highest since April.
- Energy Aspects still see some downside risk in oil prices on Monday when the US markets properly open its head of research Amrita Sen said on CNBC.
- Citigroup lowered its Brent crude forecast as the Middle East geopolitical risk premium fades.
- High prices of WTI may not be sustainable given the need for exports and a more substantial correction in FOB values appears necessary to reopen export channels, according to Sparta Commodities.
