Brent crude's earlier spike above $87/bbl quickly gave way to fresh selling pressure. There is still support evident around $85.50 though, with crude not dipping below this support level, which was also evident through the Friday offshore session as well. We last tracked just above this level at $86.65. WTI is around $78.30 currently, displaying similar trends.
- Oil headwinds continue to persist from the broader demand standpoint, particularly as major central banks tighten policy to curb inflation pressures, which is taking precedence over any growth concerns.
- On the supply front, Iran looks boost capacity to 5.7mn barrels per day over the medium term and is seeking outside investment even without a fresh nuclear deal with the US.
- Elsewhere though, at the Singapore Asia Pac Petroleum Conference, the focus is on OPEC+ supply and when the organization might respond to weaker demand conditions as we move into Q4.
- There is also a tropical storm off the coast of Florida, which will be eyed for potential supply disruptions later in the week.