API reports draw while market awaits EIA report

Both Brent and WTI is heading higher as the focus shifts on geopolitical tensions. WTI is currently trading at $69.1 per barrel and Brent at $5.5 per barrel premium to WTI.

Key factors at play in the crude oil market –

• According to Reuters, OPEC production is up 0.32 million barrels per day in June as Saudi Arabia pumped 0.7 million barrels more. OPEC production reached 32.32 million barrels per day.
• According to Platts, OPEC production was 32.35 million barrels per day.
• OPEC numbers also suggest production rise of 0.32 million barrels per day with Saudi production up 0.42 million barrels per day.
• Trump is pressing Saudi Arabia to increase oil production by almost 2 million barrels per day. Saudi Arabia is likely to comply.
• OPEC announced full compliance to 100 percent of the deal from current 147 percent.
• The U.S. reportedly asked allies to stop importing Iranian oil from November this year.
• Libyan faces political crisis as control battle for oil field intensifies. Production drops to 0.6 million barrels in June.
• Attacks on Saudi oil tankers by Houthi rebels from Yemen shows the risk in Red Sea channel, near the Bab al Mandab bottleneck.
• Venezuela in crisis as oil production declined to 1.24 million barrels per day in July. There has been an assassination attempt on President Nicolas Maduro last weekend.
• EIA projects U.S. crude production to increase to 11. 4million barrels per day by end of 2019 and U.S. would become the single largest producer by next five years.
• Saudi corruption crackdown yielded $106 billion according to the country’s attorney general.
• Current U.S production at 10.9 million barrels per day.
• API reported a draw of 6 million barrels of crude oil. Gasoline saw a build of 3.1 million barrels.

Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.