*Biggest US Crude Draw Since 2019
The EIA reported a 10.6 million bbl drop in crude stocks, however the total stocks were still 17% above the 5-year seasonal average.
Crude oil: -10.6M
Gasoline: +0.7M
Distillates: +0.5M
Refinery utilisation: 79.5%
*BP Fined for Shetland Oil Spill
BP has been fined £7,000 after spilling 95 tonnes of crude oil off the coast of Shetland according to the BBC. The investigation by the Department for Business, Energy and Industrial Strategy concluded that the discharge had not been allowed under the terms of its permit.
*Reasoning Behind Iran-China Deal
There are a handful of reasons behind the Iran-China deal to boosts the Middle eastern country’s oil production. First, the country needs the money after having suffered greatly from American sanctions and the collapse in price of crude. Second, it cannot allow production to fall too much if it hopes to keep a challenge up on other producers in the region like Saudi Arabia. The investment money is needed to help further develop Iran’s oil industry and increase its production capability. And lastly it gives China what they want, that being another ally in the region to challenge American influence.
*Saudi Arabia Could Cut September Crude Prices
Saudi Arabia are expected to cut their official selling price to Asian buyers in September according to Reuters. A survey has shown that they expected a cut in price from a maximum of $1 to 20c as benchmarks and weak refining margins start to drag on the market.