Crude Jumps as OPEC Consider Output Cuts at Oct 5 Meeting

Crude jumps up over $2 on reports that OPEC+ may consider a production cut of more than 1mbpd at the meeting on Wednesday.

• After the previous OPEC meeting Saudi Arabia said the group would remain pre-emptive and proactive in stabilising the oil market. The group are due to meet in person for the first time Mar 2020 on Oct 5.
  • Brent DEC 22 up 2.5% at 87.24$/bbl
  • WTI NOV 22 up 2.6% at 81.53$/bbl
  • Gasoil OCT 22 up 1.6% at 1009.5$/mt
  • WTI-Brent up 1.7$/bbl at -6.52$/bbl
• Brent front month last week fell to the lowest since January on economic driven demand concerns and a stronger US dollar before the upside supply risks provided support..
• China has announced the expected extra 15 tons of new fuel quotas for Q4 2022 although this may roll over into next year due to the volume and limited time. The release will add products onto the global markets and see extra crude demand with increased supplies possibly from Russia.
  • Brent DEC 22-JAN 23 up 0.05$/bbl at 1.67$/bbl
  • Brent DEC 22-DEC 23 up 0.83$/bbl at 11.17$/bbl
• Supply concerns are supporting the curve backwardation with the time spreads near the highest since the end of August. The gasoline and diesel cracks spreads are holding steady today with the extra China supply and weak demand concerns offset by high refinery outages.
  • US 321 crack up 0.4$/bbl at 32.32$/bbl
  • US gasoline crack up 0.1$/bbl at 20.17$/bbl
  • US ULSD crack up 0.6$/bbl at 56.56$/bbl