The October Brent futures flat price performed better on Wednesday morning, rising from the $77/bbl level to $77.60/bbl at 11:30 BST (time of writing). API inventory data was lacklustre, as US crude stocks indicated a +347kb build against expectations of a 2.7mb draw. The crude build was more significant than the draw in gasoline and distillates, as previous consecutive draws in US crude stocks contributed to the sustained backwardation in crude. Nigeria’s government said “significant production increases” of gasoline from the 210kb/d Port Harcourt and 650kb/d Dangote refineries are “expected from November”. South Korea will extend the fuel tax cut for two months to end of October as rising tensions in Middle East increase global oil price volatility, according to the Finance Minister. Norwegian O&G companies should boost investments in E&P to slow an expected decline in the country’s output in the coming years, the national petroleum industry regulator said in a resource report on Wednesday. Finally, the front (Oct/Nov) and 6-month (Oct/Apr) Brent futures spreads are at $0.60/bbl and $2.37/bbl respectively.
