Crude Higher on OPEC Commitment as Market Awaits Price Cap Details

Crude extends gains as OPEC members remain committed to production targets and denied reports of an increase of 500kbpd at the next meeting on Dec 4. Weakness in the US dollar is adding to the upside pressures.

• The market awaits details of the G7 price cap on Russian seaborne oil possibly tomorrow. The cap is due to start in line with the EU ban on Dec 5. Russian have repeatedly stated that they will not supply fuel to countries implementing any cap.
• US National Security Council spokesman John Kirby says the US is in touch with EU partners about setting a price cap on Russian crude oil.
• “It’s also not just about the dollar figure. It’s about the implementation, of course, making sure as many countries as possible can sign on to that,” he said.
• Upside moves are limited by rising covid cases and restrictions in China.
  • Brent JAN 23 up 1.9% at 89.1$/bbl
  • WTI JAN 23 up 1.8% at 81.5$/bbl
  • WTI-Brent down -0.17$/bbl at -7.6$/bbl
  • Brent JAN 23-FEB 23 up 0.28$/bbl at 0.64$/bbl
  • Brent JUN 23-DEC 23 up 0.2$/bbl at 3.42$/bbl