- WTI rallied to over $85/Bbl Friday morning to what could be the highest close since November 16, 2022
- The People’s Bank of China cut banks’ FX reserves to boost yuan
- The cuts are the latest attempt to shore up confidence in the world’s second-largest economy (Bloomberg)
- Saudi observed crude shipments plunged in August to multi-year lows
- Bloomberg tanker-tracking data showed Saudi exports were about 5.6 MMBbl/d in August; compared with a revised 6.3 MMBbl/d in July
- Nearby oil time spreads are the strongest in 10 months
- WTI prompt-month vs. next month future traded at +$0.78/Bbl Friday morning
- The positive spread for Month 1 to Month 2 is a far cry from -$0.20 contango in late June
- AEGIS notes the rising time spread is a signal that the physical crude market is tightening, mostly from large OPEC+ supply cuts