- Oil is set for a third weekly decline
- Fears of significant rate hikes that are expected to stifle global economic growth and fuel demand still weigh on oil prices
- U.S. Dollar is holding near last week's high above 110, its highest since 2002
- A more expensive dollar can cause foreign buyers of dollar-denominated commodities to pay more for the same amount of goods
- China's refineries processed 12.64 MMBbl/d of crude in August, the lowest volume since March 2020 (BBG, Reuters)
- China's crude processing increased from July (12.53 MMBbl/d) to August by 0.9% but decreased year over year by 6.5%, according to the National Bureau of Statistics
- China's fuel demand has been severely affected this year as Beijing's strict COVID-19 control measures hindered economic growth and mobility
- Additionally, the IEA sees China's oil demand dropping by 0.420 MMBbl/d, or 2.7% this year, its largest annual drop in oil demand since 1990
- The projected decline in China prompted the IEA to trim the global oil demand forecast by 0.110 MMBbl/d to 2 MMBbl/d while keeping its 2023 growth forecast of 2.1 MMBbl/d
- Germany took control of a major refinery owned by Russian oil giant Rosneft on Friday, taking a step toward ensuring energy supply and seizing control of their energy industry (BBG)
- Three refineries are part of the Rosneft German unit, and this move coincides with heightened tensions between Germany and Russia as Berlin plans to stop buying crude from Moscow by the end of the year
- Two of the refineries process almost 12% of Germany's total crude, and an update is expected from Germany's economic minister and chancellor today
- The nation is also in talks to take over Uniper SE and two other large gas importers in a step to avoid the collapse of its energy market, according to people familiar with the matter