- Oil trades below $80 for the first time since August amid weak demand data from China
- Chinese refiners have reduced output due to weak refining margins
- The call skew recently seen in the oil market has faded, with put options now more expensive relative to calls
- OPEC remains bullish on oil demand growth ahead of meeting (BBG)
- Despite weak economic data, OPEC continues to hold a positive view on global oil demand
- The OPEC Secretary General said, “The economy, despite the challenges, is still doing quite well,” and “All I can say for now is that we continue to monitor supply and demand fundamentals on a daily basis”
- The next OPEC+ meeting will determine if Saudi Arabia and Russia will continue their voluntary supply cuts into 2024
- A record number of supertankers is inbound to the US (BBG)
- 48 vessels will arrive in the US in the next three months, the most in at least six years, according to ship tracking data from Bloomberg
- US light crude exports have surged this year as US refiners have preferred heavier grades, which yield more diesel
- Energy Aspects said, “US slate-optimization is forcing further volumes of US light sweets to the waterborne market”