Mid-Day Oil Summary: Crude Eases Back

Crude front month is slightly pulling back with suggestions of further increases in Iranian oil production next year addition to the earlier softer prices. Crude was already drifting down following a rally in recent days as the market assesses the future balance from risks of weaker demand growth and the uncertain OPEC+ production plans ahead of the group meeting this weekend.

• Brent JAN 24 down -0.5% at 81.93$/bbl
• WTI JAN 24 down -0.5% at 77.44$/bbl
• Gasoil DEC 23 down -0.9% at 815.5$/mt
• WTI-Brent down -0.04$/bbl at -4.48$/bbl
• OPEC is likely to maintain the existing group and unilateral supply reductions at the meeting this weekend to preserve a floor for crude prices according to RBC Capital Markets LLC.
• Iran’s oil production is estimated to reach 3.6mbpd in March next year, Iran’s Oil Minister, Javad Oji, said via Asharq News. Output from March 2024 onwards will reach 4mbpd, Javad Oji said, cited by Shana.
• Russian seaborne crude exports averaged 2.7mbpd in the week to 19 November, down by 580kbpd from the week prior according to Bloomberg.
• The API oil inventory data is due for release today at 16:30 ET ahead of the EIA weekly data tomorrow.
• Norway’s total liquid production in October rose to 2.066mbpd, up from 1.853mbpd in September, but stood 4.1% below the forecast, NPD data showed.
• Heavy maintenance in the Middle East and lower gasoline exports from China will support the East of Suez gasoline market in coming weeks according to FGE last week.
• Middle Eastern diesel exports to Europe fell to 248kbpd in October, the lowest level in eleven months, down from 307kbpd in September, as refinery disruptions, mainly Al-Zour, and more exports from the US weighed on supplies, S&P Global Commodities at Sea data showed.
  • EU Gasoline-Brent down -0.8$/bbl at 6.94$/bbl
  • EU Gasoil-Brent down -0.4$/bbl at 25.62$/bbl