Crude Steadies After Losses on OPEC Skepticism

Crude markets are softer again today after dropping yesterday after OPEC+ suggested addition cuts but with limited details on the voluntary measures. Front month crude has lost most of the gains seen earlier this week in the run up to the meeting. The resumption of loadings from Black Sea Ports and a stronger US dollar also added some further downside.

• Brent FEB 24 down -0.4% at 80.52$/bbl
• WTI JAN 24 down -0.3% at 75.71$/bbl
• Gasoil DEC 23 up 0.2% at 803$/mt
• WTI-Brent up 2.46$/bbl at -4.74$/bbl
• OPEC has announced additional voluntary cuts following today’s meeting, with a total reduction of 2.2m b/d. Cuts are as follows: Saudi Arabia (1m b/d); Iraq (223k b/d); United Arab Emirates (163k b/d); Kuwait (135k b/d); Kazakhstan (82k b/d); Algeria (51k b/d); and Oman (42k b/d).
• Both the CPC terminal and the nearby Novorossiysk facility resumed operations on Nov 30. Oil shipments at CPC resumed from two single point moorings, while a damaged third SPM has been taken out of service.
  • Brent FEB 24-MAR 24 down -0.01$/bbl at 0.27$/bbl
  • Brent JUN 24-DEC 24 down -0.09$/bbl at 1.82$/bbl
• Jun24-Dec24 times spreads have followed the front month back to near start of week levels but the prompt spreads are maintaining some of the gains on the week with WTI approaching back up towards parity.
• Diesel and gasoline crack spreads followed crude market lower yesterday with weak demand weighing on diesel and gasoline upside limited by steady supplies.
  • US gasoline crack down -0.2$/bbl at 14.97$/bbl
  • US ULSD crack down -0.5$/bbl at 39.11$/bbl