Oil prices climb as traders refocus on fundamentals.
Russia flags OPEC+ coordination on track. Russia’s deputy prime minister Alexander Novak announced that OPEC+ members have agreed on the main parameters of production over the upcoming months but would only announce it next week, indicating Riyadh’s and Moscow’s cuts are to continue, OilPrice said.
Bullish sentiment is building in oil markets as U.S. inventory levels continue to drop while OPEC+ production and export cuts are expected to be extended. Continuous US stock draws equivalent to a 1 million b/d decline over the past five weeks have led to an unusually tight oil market in the United States, adding upward pressure to oil prices despite economic woes. Widespread expectations of OPEC+ extending production and export cuts as well as recovering Chinese manufacturing activity have added to the bullish sentiment, with ICE Brent surpassing $87 per barrel.
Chevron evacuates its Gulf Coast platforms. US oil major Chevron evacuated its staff from three oil platforms in the Gulf of Mexico – Blind Faith, Petronius and the soon-to-be-decommissioned Genesis – ahead of Hurricane Idalia, shutting in some 125,000 b/d of production capacity. Japan extends oil subsidies until end-2023.Japan’s Trade and Industry Ministry extended oil product subsidies until the end of December 2023 as retail gasoline prices soared to the highest readings ever this week, reaching $200 per barrel, boosted by higher oil prices and a weaker yen.