Gulf output off, Refineries/China on

Refineries in the path of Tropical Storm Barry continued to operate despite flood threats while the storm has slashed U.S. Gulf of Mexico crude output by 73%, or 1.38 million barrels per day. This continues to leave us with a finely balanced situation whereby specific situation problems like the storm, Iran etc are holding back against the more systemic problems of slower economic growth. It’s not a particularly exciting or sexy start to the week, but at least we know where we start and it’s a bit more tangible than random API or EIA figures. China’s economic growth slowed to 6.2% in the second quarter from a year earlier, in line with analysts’ expectations, with demand at home and abroad faltering as the Sino-U.S. trade war bites. But it’s still over 6% which is pretty incredible and clearly supported. I’m sure that if it drops further the Chinese government will be able to turn on the spending taps like only communist regimes know how.