Oil prices were down this morning on the expectation that API statistics will show a build on U.S. crude stocks. Analysts polled by Reuters are projecting a 2.3 million barrel increase in crude supply. If this is the case, it is likely that the market will react negatively tomorrow. Crude/ distalle prices have since rebounded after Colonial Pipeline Company's announcement that its downed gasoline line will restart operations on Wednesday.* Global news today is bearish:Venezuela, Nigeria and Libya are expected to increase oil exports, despite talks of a production freeze agreement with Russia. Mobil Producing Nigeria Unlimited (MPN), a unit of ExxonMobil, will resume shipment of Qua Iboe crude (Nigeria’s largest grade of crude) in October, three months after the company declared force majeure on exports of the grade.
*Data released late yesterday showed a rise in Saudi Arabian oil exports in July. Exports rose from 7.456 million bpd in June to 7.622 million bpd in July.
*According to Olivier Jakob, managing director of PetroMatrix (Switzerland), “An output freeze would only secure an even higher push of Saudi crude oil and would be a case where the proposed cure is worse than the disease.”