Global Commodities: Beware the Ides of September

We revisit the five conditions outlined in June that are necessary for crude oil prices to start reflecting the expected year-end weakness, and suggest that September could be a turning point for the oil market. Global oil inventories built, but the rise in OECD stocks has been modest by comparison. In response, both Brent and WTI curves have flattened out and turned into a ‘smile.’ Refining margins and runs surged in the third quarter, supporting a rebuilding of global product inventories, though stocks in certain regions and products remain below their five-year averages. As a result, refining margins have eased from their previous stratospheric highs, yet continue to hold up well.   Speaker: Natasha Kaneva, Head of Global Commodities Research   This communication is provided for information purposes only. Institutional clients can view the related report at https://www.jpmm.com/research/content/GPS-5078020-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2025 JPMorgan Chase & Co. All rights reserved. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. It is strictly prohibited to use or share without prior written consent from J.P. Morgan any research material received from J.P. Morgan or an authorized third-party (“J.P. Morgan Data”) in any third-party artificial intelligence (“AI”) systems or models when such J.P. Morgan Data is accessible by a third-party. It is permissible to use J.P. Morgan Data for internal business purposes only in an AI system or model that protects the confidentiality of J.P. Morgan Data so as to prevent any and all access to or use of such J.P. Morgan Data by any third-party.

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