As of today, October WTI crude oil is down $0.33 (-0.51%) at $64.48, while October RBOB gasoline has decreased by $0.0122 (-0.62%) to $1.94, marking a 1-week low for gasoline prices. The market is reacting to eased global crude supply concerns after Russia announced that its Volgograd refinery, with a capacity of 300,000 bpd, will resume operations a week earlier than planned following repairs from drone attacks.
Additionally, a report by Vortexa indicates a rise of 11% in crude oil stored on stationary tankers, totaling 96.77 million barrels for the week ending August 22. Weaker crack spreads and an anticipated increase in OPEC+ production by 547,000 bpd effective September 1 are further contributing to downward pressure on oil prices. As of August 22, US crude inventories are reportedly 5.2% below the seasonal 5-year average, while production has risen to 13.439 million bpd.
The number of active US oil rigs fell by one to 411 in the week ending August 22, remaining just above a 3.75-year low. This marks a significant decrease from the peak of 627 rigs reported in December 2022.
