API Inventories Add Fresh Pressure

WTI & Brent sit ~$0.40 below their respective settlement levels, building on yesterday's losses.

• OPEC+ production matters continue to dominate. OPEC delegates continue to err on the optimistic side re: reaching a broad consensus re: future production ahead of the OPEC+ ministerial gathering, although the market is a little more uncertain. There appears to be 3 potential scenarios that are being discussed among some of the major players.
• Extend the current production cut by 3 months, which the Saudis seem to be behind.
• Raise output from Jan, but in a more gradual manner and by less than previously planned 2mn bpd, which seems to be Russia's preference.
• Raise output by 2mn bpd from Jan as previously planned, which Kazakhstan favours.
• Elsewhere, a surprise, sizeable headline crude stock build in the latest round of weekly API inventory data provided a further source of pressure.