Oil Summary at European Close: Crude Trades Lower

Crude front month is trading lower on the day but recouped some earlier losses with prices weighed on by yesterday’s delay to the OPEC+ meeting, a large build in US crude stocks and the easing risks from the Mideast conflict with the planned start of the ceasefire on Friday morning. Trading volumes dropped today amid the US Thanksgiving holiday.

• Brent JAN 24 down -1.1% at 81.08$/bbl
• WTI JAN 24 down -1.2% at 76.14$/bbl
• The 187th Meeting of the OPEC Conference, the 51st Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM) will convene virtually on Thursday, 30 November 2023.
• QATAR: ISRAEL-HAMAS TRUCE TO START FRIDAY 7:00 AM LOCAL TIME. The ceasefire was initially planned to start on Thursday, but a statement by the National Security Council through the Israeli prime minister’s office on 22 Nov stated that the release of hostages, and therefore a temporary pause in fighting, would not happen until Friday 24 Nov.
• Nigeria and Angola are fighting the adjustment of the OPEC crude output quotas that led to a delay of the OPEC+ meeting, despite not meeting current output targets according to OPEC secondary sources and market sources. Despite the delay, the market is still likely expecting Saudi to extend voluntary cuts in next year.
• Nigeria is boosting its crude production target ahead of the latest OPEC+ meeting – which has been moved because of discontent from both Nigeria and Angola towards proposed quota reductions.
• Nigeria’s 2024 target will reduce to 1.38mn bpd – from 1.74mn bpd previously but will rise to 1.58mn bpd if three independent consultancies can confirm its capacity to produce at this level.
• Angola’s OPEC governor Estevao Pedro quashed any rumours about the country leaving OPEC+ over the latest spat with the group surrounding its tighter 2024 proposed production quotas.
• Chinese independent refiners are holding off on making new purchases of Venezuelan oil due to discrepancies in offered prices following the US’ relaxation on the country’s sanctions, trading sources told Reuters.
• Three Greek shipping firms - Minerva Marine, Thenamaris and TMS Tankers - have stopped transporting Russian oil in recent weeks, after the US stepped up imposing sanctions on shipping firms carrying Russian oil – often above the G7 oil price cap, four traders told Reuters and shipping data showed.