Crude Higher on China, OPEC and Russia Uncertainty

Crude ticks higher on increased optimism for Chinese oil demand, uncertainty over the upcoming OPEC meeting and after API data showed a big draw in crude stocks.

• Speculation has increased in recent days for an easing to Chinese covid restrictions leading to an increase in oil demand. A surge in covid cases and lockdown restrictions have weighed on crude price this month helping to bring the front month Brent price down from just under 100$/bbl.
• OPEC have not given a clear indication of their intentions at the upcoming meeting on Dec 4. Lower prices, prompt spreads in contango and falling demand have increased speculation for a production cut but reports so far favour no changes in OPEC+ supply targets.
• No further progress has yet been made from EU members in agreeing details on the Russian oil price cap.
  • Brent FEB 23 up 2.3% at 86.19$/bbl
  • WTI JAN 23 up 2.4% at 80.08$/bbl
  • Brent FEB 23-MAR 23 up 0.07$/bbl at 0.08$/bbl
  • Brent JUN 23-DEC 23 up 0.37$/bbl at 2.74$/bbl
  • Brent DEC 23-DEC 24 up 0.43$/bbl at 4.1$/bbl
  • WTI JAN 23-FEB 23 up 0.03$/bbl at -0.05$/bbl
  • WTI JUN 23-DEC 23 up 0.41$/bbl at 2.66$/bbl