October 04, 2022 14:21 GMT
Supply concerns and the potential cut in OPEC+ production targets at their meeting in Vienna tomorrow pushed the Brent Dec22-Dec23 spread up to the highest since Jul 4 at 12.72$/bbl.
- The expectation is for OPEC+ to announce a production cut of 1mbpd or more with some estimations suggesting a reduction in targets of up to 1.5mbpd. The real production cut is likely to be only 40-50% of the headline figure due to underproduction by many group members.
- The crude market has also been supported today by a softening of the US dollar.
- Brent DEC 22 up 2.4% at 90.96$/bbl
- WTI NOV 22 up 2.2% at 85.46$/bbl
- WTI-Brent down -0.18$/bbl at -6.45$/bbl
- Brent DEC 22-JAN 23 up 0.06$/bbl at 1.98$/bbl
- Brent DEC 22-DEC 23 up 0.70$/bbl at 12.39$/bbl