Unexpected Increase in Inventories + Worries About Weak Demand, Oil Prices Fell the Most in A Month

[U.S. crude oil inventories unexpectedly increased last week]

U.S. crude oil inventories rose last week, while refined oil inventories fell, data from the American Petroleum Institute (API) said. Crude inventories rose by about 593,000 barrels in the week ended Aug. 26. Gasoline inventories fell by about 3.4 million barrels, while distillate inventories fell by about 1.7 million barrels.

[Iraq can transfer crude oil exports to Europe if necessary]

Iraq's state oil marketing group SOMO said oil exports had not been affected by the violence in Baghdad, while low liquidity had exacerbated price volatility. A company source at Iraq's State Oil Marketing Organization (SOMO) told Reuters on Tuesday that SOMO could redirect more crude exports to Europe if needed. SOMO started increasing exports to Europe in June, and Iraq has adjusted its export flow due to increased competition in the Asian market, the source said.


[Gazprom will close the Beixi No. 1 natural gas pipeline for 72 hours]

According to the energy market information disclosure platform Seeburger, from August 31 to September 3, Russian energy giant Gazprom will stop the Nord Stream 1 natural gas pipeline that supplies gas to Germany for maintenance. The confirmation of the maintenance time of the Nord Stream 1 pipeline continues the energy standoff between Russia and the European Union. The energy woes have accelerated inflation in the EU and raised the risk of gas restrictions and recession in the EU.


[Russia cuts natural gas supply to France]

Russia's Gazprom (Gazprom) cut its natural gas supply to France's Angers Group on the 30th, citing a contract dispute between the two sides. Angie Group did not elaborate on the nature of the contract dispute with Gazprom. An Angie Group spokesman said that natural gas supplied by Russia originally accounted for 17% of Angie Group's imports, but the proportion fell to less than 4% after the Ukraine crisis escalated in February this year. Angie Group holds a 9% stake in the "North Stream-1" pipeline.


[Oil market may reduce supply by 1 million barrels if violence in Iraq escalates]

Helima Croft, head of commodities at Royal Bank of Canada, said on Tuesday that the recent political turmoil in Iraq could cut Iraq's oil supply by 1 million barrels a day and that if violence in the country continues to escalate, the crude oil market will be severely affected. Croft further pointed out that while the country's chaotic political situation has not yet had a big impact on oil prices, prices will soon be affected, especially if the violence spreads to oil production facilities.