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OIL: Oil Weighs Impact of Possible Delay to OPEC+ Supply Hike

OIL

Oil markets are weighing the possibility and impact of headlines suggesting plans to delay the OPEC+ cut unwinding which has provided price support today.

  • Prices initially spiked before falling back following the Bloomberg headline: "*OPEC+ IS CLOSE TO AGREEMENT ON DELAYING SUPPLY HIKE: DELEGATE" – bbg
  • This confirmed earlier reports in the market suggested by Reuters and Dow Jones that the unwinding could be delayed, rather than offered additional information so the market is readjusting.
  • The potential for a recovery in Libya’s oil exports with the possibility of an agreement to end the political dispute has added to the downside pressure from soft China economic growth.
  • The Dec24-Cec25 spread has fallen to the lowest since Dec23 although the prompt is seeing more support from the recent Libya outages and with another draw in US crude stocks expected in data this week.
    • Brent NOV 24 down 0.2% at 73.57$/bbl
    • WTI OCT 24 down 0.2% at 70.17$/bbl
    • Brent NOV 24-DEC 24 down 0.02$/bbl at 0.43$/bbl
    • Brent DEC 24-DEC 25 down 0.19$/bbl at 2.13$/bbl
    • WTI OCT 24-NOV 24 down 0.02$/bbl at 0.73$/bbl
    • WTI DEC 24-DEC 25 down 0.25$/bbl at 2.39$/bbl

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