- Oil grazed $90/Bbl, reaching a high not seen since November amid persistent supply concerns
- October ’23 WTI gains $1.36 this morning to trade around $89.88/Bbl
- The IEA and OPEC, in their monthly reports, stressed a significant deficit in the fourth quarter
- In its tenth straight rate hike, the ECB raised rates by 25 bps and signaled this will likely be its final move
- The US dollar strengthened to a six-month high, weighing on dollar-denominated commodities
- Wednesday's CPI showed a modest uptick in the rate of inflation, boosting bets that the Fed might keep rates steady
- PPI rose 0.7% in August, surpassing July’s 0.4% to mark the largest increase in 14 months, reported the US Bureau of Labor Statistics
- Additionally, China's Central Bank lowered the reserve requirement ratio (RRR) by 25 bps in an effort to stimulate the nation's economy
- Diesel futures soar to highest since January amidst supply strains (Bloomberg)
- Diesel futures surge to $3.43/gal, the highest since January, driven by increased freight demand, reduced spare refining capacity, and low inventory ahead of winter
- Additionally, EIA raised the distillate consumption forecast to 3.9 MMBbl/d for 2023 amid global supply constraints
- Reduced exports of medium and heavy crudes from Saudi Arabia & Russia and a shift in refining practices could lead to a 1.5% drop in diesel yield in 4Q2023, a loss of 1.2 MMBbl/d estimates Woodmac