OPEC+ Crunch Time

The major crude benchmarks have recovered from worst levels of the session to trade at unchanged levels.

• The latest BBG source report (released Wednesday) has built upon the general idea that OPEC+ will come to some form of production deal by the time the latest round discussions wrap up later today. The piece noted that "OPEC+ is making headway in its negotiations on oil-output cuts, raising the odds that Thursday's meeting can salvage a deal after failed talks earlier in the week. After days of direct negotiations between the group's heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- discussions are now focusing on proposals for gradual easing of output cuts over several months, said a delegate. It's unclear whether the tapering would start in January, or would be delayed to later in the first quarter."
• This general sense of optimism, alongside a slight drawdown in headline crude stocks in the latest weekly DoE inventory report (which contrasted with the surprise, sizeable build in the API equivalent) allowed the benchmarks to add ~$0.80 apiece come settlement time on Wednesday.