Oil prices tumbled hard today after reports confirmed that Iraqi crude exports were so far unaffected by the turmoil in the country.
“Demonstrations and acts of violence in Iraq did not affect the operations of Iraqi oil exports through the southern ports,” Al-Yassiri said.
Additionally, a source in one of the OPEC+ delegations told Russian news agency TASS that OPEC+ are not currently discussing the possibility of oil production cuts.
“The market is hoping for a solution in Iraq, but, until such time, a notoriously volatile country will keep the market nervous,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Denmark.
All of this was exaggerated by an abysmal lack of liquidity in markets.
Crude +593k (-1.9mm exp)
Gasoline -3.414mm (-1.3mm exp)
Distillates -1.726mm (-1.2mm exp)
Analysts expected a 3rd week of crude draws last week (and 4th week of Gasoline stock declines). but they were disappointed as API reported a surprise crude build… Decent product draws however suggest demand remains. Also of note is that API reported a drawdown in Cushing stocks, the first in 9 weeks…
WTI hovered just above $92 ahead of the API print and slipped back below on the surprise build…
Finally, the market appears to be shrugging off the fact that Europe is struggling for access to alternative supply as a boycott of seaborne Russian imports planned for December threatens to exacerbate an already tight supply outlook.