Global Crude Oil Clings to $100 a Barrel as US Oil Exports Rise

Total US oil exports last week hit a record high of 11.1 million barrels, almost as much as a day's US production, according to government data released on Wednesday.

Meanwhile, crude oil prices extended their rise to the fifth day in six days. The global benchmark Brent held above $100 a barrel, although the market struggled for much of the session as traders pondered the possibility of another big rate hike in the US in September and the possibility that the incipient recession recorded in the US in the first two quarters of this year could deepen and affect Europe and the rest of the world. Likewise, on the minds of oil traders was the additional supply that would enter the market if Iran struck a renewed nuclear deal with global powers that would lift US sanctions on its oil and allow it to legitimately return to the crude export market. US crude West Texas Intermediate traded up $1.15, or 1.2%, at $94.89 a barrel in New York. WTI has risen with few pauses since hitting a nearly six-month low of $85.73 on August 16. London-traded Brent gained $1, or 1%, to close at $101.22. The global crude benchmark has been rising since falling to $91.71 six days ago. Traders said that recession fears aside, one reason for Brent's relative underperformance against WTI on Wednesday was the superior export performance of US crude compared to global rival oils. "Judging by the pace at which the US is exporting oil, Saudi Arabia and the rest of OPEC should be worried about their market share," said John Kilduff, partner at New York-based energy hedge fund Again Capital. "The US is approaching a day's worth of oil production for the sum of its crude and product exports," Kilduff observed. "The erosion of market share has led the Saudis to ramp up production to kill US shale ahead of the pandemic. Although US crude oil production remains below pre-pandemic highs, such export numbers will raise the Saudis' eyebrows. I can tell you they will not like it at all."