The Organization of the Petroleum Exporting Countries (OPEC) and oil-producing nations outside of OPEC confirmed on Thursday that eight of its members have agreed to extend their additional voluntary production cuts for two months until the end of November 2024. The initial cut of 2.2 million barrels per day, implemented voluntarily by Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates, will now be extended until the end of November, after which these cuts will be gradually phased out on a monthly basis starting December 1, 2024. The overproducing countries once again confirmed their commitment to fully compensating for the entire surplus volume by September 2025.
EIA Petroleum Report for week ending August 30, 2024
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 6.9 million barrels from the previous week. At 418.3 million barrels, U.S. crude oil inventories are about 5% below the five year average for this time of year.
U.S. crude oil refinery inputs averaged 16.9 million barrels per day during the week ending August 30, 2024, which was 36 thousand barrels per day more than the previous week’s average. Refineries operated at 93.3% of their operable capacity last week. Gasoline production increased last week, averaging 9.7 million barrels per day. Distillate fuel production increased last week, averaging 5.2 million barrels per day. U.S. crude oil imports averaged 5.8 million barrels per day last week, decreased by 768 thousand barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.3 million barrels per day, 8.0% less than the same four-week period last year. Total
motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 655 thousand barrels per day, and distillate fuel imports averaged 182 thousand barrels per day. Total motor gasoline inventories increased by 0.8 million barrels from last week and are about 2% below the five year average for this time of year. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 0.4 million barrels last week and are about 10% below the five year average for this time of year. Propane/propylene inventories increased by 2.6 million barrels from last week and are 12% above the five year
average for this time of year. Total commercial petroleum inventories decreased by 8.0 million barrels last week.
Total products supplied over the last four-week period averaged 20.8 million barrels a day, down by 1.6% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.1 million barrels a day, up by 0.9% from the same period last year. Distillate
fuel product supplied averaged 3.7 million barrels a day over the past four weeks, down by 0.7% from the same period last year. Jet fuel product supplied was up 2.8% compared with the same four-week period last year
The American Petroleum Institute (API) 7.4 million plunge in oil inventories
Crude oil inventories in the United States fell by a staggering 7.4 million barrels for the week ending August 30, according to The American Petroleum Institute (API). Analysts had expected a far smaller 900,000-barrel dip. For the week prior, the API reported a 3.4-million-barrel decrease in crude inventories. So far this year, crude oil inventories are more than 2 million barrels under where they were at the start of the year, having decreased by 10 million barrels, according to API data.
Oil prices continued their decline on Wednesday ahead of the API data release. Oils total loss in the past week is more than $7 per barrel. Disappointing economic data out of the United States and China spooked markets. Gasoline inventories also fell this week, by 300,000 barrels, on top of last week’s 1.86-million-barrel decrease. As of last week, gasoline inventories are 3% below the five-year average for this time of year, according to the latest EIA data. Distillate inventories fell also, by 400,000 barrels, on top of last week’s 1.4-million-barrel decrease. Distillates were already about 10% below the five-year average for the week ending August 23, the latest EIA data shows. Cushing inventories completed the draws, with a loss of 800,000 barrels, according to API data, which add onto the 486,000-barrel draw from the previous week. NN: Now we wait for todays EIA inventory report for confirmation.
Netanyahu: Deal comprising Israeli withdrawal ‘false narrative’
Israeli Prime Minister Benjamin Netanyahu pointed out on Wednesday that any deal involving the removal of troops from the Gaza-Egypt border’s Philadelphi Corridor is a “false narrative,” seemingly in response to White House National Security Communications Advisor John Kirby’s assertions that Israel had agreed to a framework that included the mentioned withdrawal. “There is a possibility of reaching a Gaza ceasefire deal if we stick to our strategy,” Netanyahu said during his address to the foreign media in Tel Aviv. “We are committed to our war goals. If we relieve pressure on Hamas by leaving the Philadelphi Corridor we won’t free our hostages.” NN: This is some serious shit!! Their is no deal.
OPEC+ Discusses Delaying Supply Boost After Oil Price Crash
- Oil prices fell to their lowest level in 9 months early on Wednesday morning on concerns about demand and potential supply increases.
- OPEC+ is reconsidering its plan to ease production cuts in October due to the price slump.
- Oil prices have since recovered slightly on the news that OPEC+ is considering maintaining its production cuts.
LONDON, Sept 4 (Reuters) – OPEC+ is discussing a delay in a planned output increase next month as oil prices hit their lowest in 9 months, three sources from the producer group told Reuters on Wednesday. Oil prices have been falling together with other asset classes on concerns about a weak global economy and particularly soft data from China, the world’s biggest oil importer. Last week, the group looked set to proceed with a 180,000 barrel per day (bpd) hike in October, but market volatility from oil facility shutdowns in Libya and a weak demand outlook have raised concern within the group, one of the sources said.
There were suggestions to delay the increase, one of the sources said. Another said a delay was looking highly possible.
Eight members of the OPEC+ – which includes its allies – are scheduled to raise output by 180,000 bpd in October as part of a plan to begin unwinding their most recent layer of output cuts of 2.2 million bpd while keeping other cuts in place until the end of next year. Prices have experienced high volatility in recent weeks as a standoff between rival factions in OPEC producer Libya over control of the central bank led to a loss of at least 700,000 bpd of production.
Prices slumped by about 5% on Tuesday on news that a possible deal to resolve the conflict was in the works.
” RBC Capital analyst Helima Croft said in a note. After prices plunged by nearly 5% on Tuesday, reports began to emerge on Wednesday that the OPEC+ group is now reconsidering the unwinding of the cuts as of October.
“The further pressure we see on prices the more likely that OPEC+ will be forced to scrap plans to bring supply back onto the market,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Wednesday. “However, with the balance looking soft through 2025, the question is when the group will eventually be able to bring supply back onto the market without putting significant pressure on prices,” they added.
Israel Security Cabinet Votes to Keep Troops in Gaza’s Philadelphi Corridor……Ben-Gvir says he is working against ceasefire
- Issue has become a key sticking point in cease-fire talks
- Hamas says Israeli forces must leave the corridor in Gaza
Israel’s government voted to maintain a military presence in Gaza’s so-called Philadelphi corridor, an issue that’s proved a key sticking point in cease-fire talks with Hamas.
Prime Minister Benjamin Netanyahu’s security cabinet almost all approved the policy, according to a readout of Thursday’s meeting seen by Bloomberg.
Hamas has insisted that Israel’s forces leave the area, which runs along the Egypt-Gaza border at the south of the Palestinian territory, once a truce starts. The problem is vexing mediators as they try to persuade the two sides to pause and eventually end the devastating war in Gaza, now almost into its 12th month.
The Philadelphi Corridor Has Become a Major Point of Contention Between Israel and Hamas
In the last few weeks, Israel has taken a firmer stance on the Philadelphi corridor, with Netanyahu saying his soldiers are needed there to prevent Hamas smuggling weapons into Gaza from Egypt. The Israeli cabinet members said their vote will bring a cease-fire closer because it will make clear to Hamas that it needs to compromise, according to the read-out. Netanyahu said the Oct. 7 attack by Hamas, which triggered the war in Gaza, “was possible as a result of the Philadelphi axis not being in Israel’s hands,” the read-out said. “The prime minister said this reality will not repeat itself and that this time Israel is determined to keep this border under its control.” Two ministers didn’t vote in favor. They were Defense Minister Yoav Gallant, who was against the measure, and Itamar Ben Gvir, the national security minister, who abstained. Ben Gvir opted not to vote because Netanyahu proposed some draw down of troops and the national security minister wants no reduction at all, according to an official familiar with the matter. Gallant opposed the proposal because he argued it would delay a truce — rather than force Hamas to accept one more quickly — and potentially cost the lives of more hostages, according to an official close to the minister. The defense minister has been at odds with Netanyahu over many aspects of the war and they have frequently clashed in public. The vote was also put to the security cabinet without warning, the official said. The cease-fire talks, mediated by the US, Qatar and Egypt, have dragged on for months and continued this week among junior negotiators in Doha. The corridor isn’t the only obstacle. Israel and Hamas are yet to agree how many hostages will be released from Gaza in the first phase of a deal, as well as how many Palestinians will be freed from Israeli jails. In addition, Netanyahu says Israel will keep forces along a second corridor called Netzarim, which bisects Gaza, to block Hamas fighters moving back into northern parts of the territory. Hamas is against that demand. Hamas, designated a terrorist organization by the US and European Union, killed 1,200 people and took around 250 hostage when its fighters swarmed into southern Israel from Gaza on Oct. 7. Israel’s subsequent offensive has killed more than 40,000 Palestinians, according to the Hamas-run health ministry in Gaza. Israelis Begin Labor Strikes as Anger Over Hostages Build.
Ben-Gvir says he is working against ceasefire
Israeli National Security Minister Itamar Ben-Gvir said on Monday that he and his party are “using our power in the government to prevent a reckless deal” between Israel and Hamas. Mass demonstrations are taking place in Israel today as protesters demand an agreement that would allow the release of hostages held by Hamas. “With Hamas you need to speak only between gunsights,” Ben-Gvir told a group of protesters, according to the Times of Israel. The ceasefire proposal currently under consideration is regarded as possibly the last chance to halt the conflict in the Gaza Strip. Why last chance????
BlackMask Pod Cast
house divided…. war by committee
Houthis Hit Two Tankers in the Red Sea
The Yemeni Houthis reportedly hit two tankers in the Red Sea on Monday, one of them Saudi-flagged. According to a Reuters report citing U.S. military sources, which said one of the targets hit on Monday was a Panama-flagged vessel named Blue Lagoon I and the other was Saudi-flagged Amjad. The Houthis took responsibility for the Blue Lagoon I hit, Reuters reported, but made no mention of the Saudi-flagged vessel. According to an AP report, Blue Lagoon I had been traveling to an undisclosed location from the Russian port of Ust Luga, broadcasting that it carried Russian crude on board. The Houthis had previously said they would not target Russian or Middle Eastern ships. There was no major damage to either of the tankers, which were close to each other when they were hit. Both were able to continue on their way after the strikes. The Saudi-flagged vessel has a capacity for up to 2 million barrels of crude while Blue Lagoon I can carry up to 1 million barrels. The AP cited the Joint Maritime Information Center, a unit set up to track the Houthis’ activity in the Red Sea and led by the U.S. Army, as saying that the Blue Lagoon I tanker “was targeted due to other vessels within its company structure making recent port calls in Israel.” “These reckless acts of terrorism by the Houthis continue to destabilize regional and global commerce, as well as put the lives of civilian mariners and maritime ecosystems at risk,” the U.S. Central Command said, as quoted by the AP. The Houthis have been targeting vessels passing through the Bab el Mandeb strait since last November in reaction to Israeli bombings of Gaza. Initially, the group said it would only target Israeli ships and those sailing under flags of Israeli allies but it has since expanded its campaign. An attempt by the U.S. and some European allies to put an end to the attacks has so far failed to produce any results. NN: The only way to end terrorists attacks is to end the terrorists, Ask Ben Laden.
US may withdraw from Gaza ceasefire talks….. Must See Video Hamas To Kill Remaining Hostages
The United States may withdraw from Gaza ceasefire negotiations if an agreement is not reached within the next two weeks, a high-ranking official within the Turkish Foreign Ministry informed RIA Novosti on Tuesday, speaking on condition of anonymity. According to the source, Washington seems to be making a sincere effort to secure a ceasefire agreement given the upcoming presidential elections and the security situation in the region but is not applying pressure on Israel. “This is an extremely dangerous decision because we will return to the starting point,” the unnamed insider emphasized. Israeli Prime Minister Benjamin Netanyahu previously reiterated his commitment to securing the hostage agreement. However, he blamed the Palestinian militant group Hamas for the lack of progress in the negotiations. NN video above is a must see.
Oil extends losses, down 4%
Crude oil dropped further on Tuesday, with both Brent and West Texas Intermediate (WTI) futures plunging over 4%. Concerns over demand in the Eurozone and China are likely to be compounded with the release of manufacturing activity data for the United States. The S&P Global and Institute for Supply Management reports found that the sector remained in contraction territory in August, dragging on the US economy as a whole. WTI for deliveries in October dropped $3.47 to sell at $70.57 per barrel at 10:30 am ET. Brent for November settlements fell by $3.24 going for $74.09 a barrel.
Netanyahu promises to target Hamas after captives deaths
Israeli Prime Minister Benjamin Netanyahu vowed to target Hamas leaders responsible for the deaths of six Israeli captives. Netanyahu emphasized Israel’s determination to hold the perpetrators accountable and secure the release of any remaining hostages. The captives’ bodies were found in a Gaza tunnel on Saturday and a senior Hamas official claimed the captives were killed due to ongoing Israeli airstrikes, noting that seven captives had previously died from similar attacks earlier this year. NN: If Israel wants peace it must finish this war and not only defeat Hamas but humiliate them and like Hirohito Sinwar must surrender a jailed or blown to bit like Ben Laden.