Oil is tumbling this morning following 'Russia poisoned Navalny with Novichok' headlines combined with reports that OPEC’s key ally also raised oil production last month.
The nation pumped 41.7 million tons of crude and condensate in August, preliminary data from the Energy Ministry’s CDU-TEK unit show, up 5.1% from July, when lower OPEC+ quotas were in force.
This week's data will start to show the effects of Hurricane Laura's destructive trip through the Gulf states.
Crude -9.36mm (-2.0mm exp)
US crude stocks tumbled 9.36mm barrels last week amid Hurricane Laura production shut-ins. Gasoline and Distillate stocks also declined as refineries were forced to close...
Hurricane Laura's effect on US crude production is clear as over 80% of the Gulf was shut in...
US Crude production plunged 1.1mm b/d last week...
Having traded at around $43 for a week or so, WTI was slammed lower ahead of the DOE data and spiked back higher after the big crude and gasoline draws...
Let's see how long this bounce lasts. Catherine Ngai, Bloomberg's oil trading reporter, sums it up perfectly:
"Important to remember that so many numbers here in today’s data will be impacted by Hurricane Laura. So please take it all with a grain of salt!"