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A Touch Higher Overnight, But Comfortably Away From Recent Peak


WTI & Brent futures sit ~$0.80 above their respective settlement levels, after shedding ~$2.00 & $1.50 respectively on Thursday. Yesterday's losses were spurred by news that Saudi crude production will soon top 10mn bpd (for the first time since it was impacted by the pandemic), while a firmer USD also applied pressure. In other news, the OPEC+ group stuck to its guns, deciding to boost its output by the previously outlined cumulative 400K bpd in December, ignoring the calls of oil consuming nations re: larger boosts of supply.

  • This has resulted in the U.S. DoE noting that it is looking at "all tools," while the White House flagged the power to put more oil onto the market if required.
  • Goldman Sachs noted that their "bullish view remains unchanged: the oil deficit remains unresolved, the current strength in oil demand remains a near-term tailwind and the increasingly structural nature of the deficits will require much higher long-dated oil prices. The now open disagreement between OPEC and the US administration, the threat of an SPR release and the potential resumption in negotiations with Iran will nonetheless increase the volatility in oil prices in coming weeks, especially as trading liquidity falls into year-end."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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