- Oil extends gains by nearly 40c to $94/Bbl
- WTI is currently trading at its highest levels in three weeks
- According to API, 5.6 MMBbl of crude was drawn last week, which would be the second straight draw amid increased crude exports
- The main pipeline for transporting crude oil from Kazakhstan to global markets is expected to see significant disruptions for months as two out of three damaged moorings are repaired (BBG)
- Cracks were discovered in the subsea equipment at two moorings at the CPC oil-loading port in the Black Sea
- CPC crude has always been an important source of low-density oil for refineries in Europe, with almost all of it coming from Kazakhstan
- CPC was expected to load 1.4 MMBbl/d in August, and the operator said that the third mooring is running in "intensive mode" and needs to be inspected
- According to reports, Russia has contacted several Asian nations to talk about potential long-term oil contracts at discounts of up to 30% from the international market price (BBG)
- The move comes at a time when Russia may be considering trying to replace European buyers once the EU's insurance ban on Russian oil goes into force on December 5
- Additionally, the measure might be an effort by Russia to stop talks about a potential ban exemption that would entail Russian crude sold under a global price cap