- Oil rally continues as the market expects a significant deficit in the fourth quarter
- October ’23 WTI gained $1.11 this morning to trade around $91.88/Bbl
- Last week, WTI hit a YTD high of $91.2/bbl and Brent at $94.6/bbl following OPEC+ and IEA's deficit forecasts of 3.3 MMBbl/d and 1.2 MMBbl/d for Q4 2023, respectively
- Chinese demand expectations as August data surpassed expectations with improved credit growth, industrial production, and retail sales. The CPI also moved out of deflation
- Despite positive August data, concerns persist in the property market with declining housing construction and dropping home prices
- Equities and the dollar traded slightly lower this morning ahead of Wednesday's FOMC meeting
- This morning, equity futures and the dollar are flat ahead of the FOMC meeting this Wednesday
- Responding to market tightness, Chinese refiners set new record in August oil processing (Bloomberg)
- Chinese refiners achieved a record fuel production throughput of 15.3 MMBbl/d in August
- Following the government's latest fuel export quotas, diesel exports surged to 0.303 MMBbl/d in August, marking the highest since March, and jet fuel exports to the highest since December
- Meanwhile, gasoline exports climbed 13% from July, reaching 0.37 MMbbl/d in August
- FGE consultants forecast Diesel exports to further rise by 0.080 MMBbl/d MoM to 0.240 MMBbl/d in September. Exports will rise by a further 0.025 MMBbl/d in October and by 0.070 MMBbl/d in November