- WTI fell for a second day by over 1% Thursday morning after total U.S. crude inventories grew and news that Iranian talks will likely restart nuclear talks next month
- Iran and the EU agreed Wednesday to restart negotiations on reviving the 2015 JCPOA agreement
- AEGIS notes that Iran has the potential to add 1.5-1.8 MMBbl/d of supply to the oil market but is not likely a near term threat
- The 1.2 MMBbl/d Capline crude pipeline that travels from Patoka, Illinois, to St. James, Lousiana, began line fill this week (Argus)
- Traditionally, Capline moved crude from the Gulf Coast to the Midwest refinery complex
- The pipeline will now offer an initial capacity of 102 MBbl/d north to south when it enters full service in early 2022
- The uncommitted rate for walk-up shipments on Capline was set at $3.75/Bbl, with discounted tariffs of $1.75-$2.50/Bbl for long-term contracts
- In their weekly petroleum inventory report, the EIA showed a 3.8 MMBbl decline at Cushing – the largest since January
- The large Cushing draw puts stocks at the oil storage hub at the lowest seasonal level since 2014
- Tighter availabilities at the hub have pressured the spread between U.S. Gulf coast WTI prices and Cushing WTI narrower over the trade month, according to Argus