- Oil is trading higher by nearly $2 to $71.32, extending gains from yesterday
- The US dollar is trading lower, supporting crude prices, after the Federal Reserves decision yesterday to leave interest rates unchanged
- The US Dollar index has declined 1.64% since yesterday and 4.5% since its October peak
- A fire was reported at Marathon’s Galveston Bay refinery, although the company said production shouldn’t be affected
- The US dollar is trading lower, supporting crude prices, after the Federal Reserves decision yesterday to leave interest rates unchanged
- IEA says oil demand growth showing signs of a sharper slowdown (BBG)
- Weak economic activity in key countries is leading to a sharp slowdown in oil demand growth according to the IEA’s latest report
- The agency cut 400 MBbl/d from its growth estimate for the final three months of 2023 and expects growth rates to decelerate dramatically next year
- The IEA also noted that high production from the US, Brazil, and Guyana is offsetting production cuts from Saudi Arabia
- Europe was one of the main reasons responsible for the growth downgrade, with the IEA saying that Europe was “particularly soft amid the continent’s broad manufacturing and industrial slump.”
- Refinery runs are undershooting IEA expectations (BBG)
- Q4 2023 refinery throughput has been “materially weaker” than the IEA expected due to extended US maintenance and outages in Europe and the Middle East
- The collapse in refinery margins in late September likely contributed to the lower run rates
- Refinery runs are expected to increase by 880 MBbl/d in 2024