October 04, 2022 09:09 GMT
Crude holding positive on the day on the prospect of OPEC production cuts and supported by a weaker US dollar.
- The uncertain supply from OPEC and Russia is supporting the forward curve backwardation despite signs that Kazakhstan supply may improve in October and after a period of steady Libya supplies around 1.2mbpd.
- Saudi Aramco CEO today highlighted the lack of spare OPEC capacity at approximately just 1.5% of total supply. They also stated they are on target to boost oil production capacity to 13mbpd by 2027. Current Saudi Arabia crude production is 11mbpd with capacity estimated around 12mbpd.
- Brent DEC 22 up 0.9% at 89.69$/bbl
- WTI NOV 22 up 0.8% at 84.3$/bbl
- Brent DEC 22-JAN 23 up 0.01$/bbl at 1.93$/bbl
- Brent DEC 22-DEC 23 up 0.3$/bbl at 11.99$/bbl