The extension of Saudi Arabia and Russia voluntary oil production cuts into next year “feels more real” but any additional cuts would have to involve more countries than just Saudi Arabia according to Kieran Gallagher, managing director of Vitol Bahrain.

• US steps to focus on vessels shipping Russian oil is “a stark reminder” that government is monitoring the market, but the impact is unclear with large fleets dedicated to this flow.
• Weakness in Chinese energy demand and the impact on oil markets are reasons for concern. Chinese refined product exports could possibly increase through the end of the year. Gasoline demand in China has dropped after healthy holiday period consumption while the diesel market is also weak.
• The return of global refining capacity in the next month or two is expected to ensure sufficient supply of diesel and jet fuel into Europe during the winter.