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Potential for OPEC+ Production Cuts Supports Crude Spreads

OIL

Crude continues to rally on the potential for production cuts from OPEC+.

  • The group will discuss a potential cut to output at their meeting on Oct 5 according to Bloomberg. After the previous meeting Saudi Arabia said the group would remain pre-emptive and proactive in stabilising the oil market. At the time of the last meeting, when the group cut production for October by 100kbpd, Brent was trading just over 95$/bbl.
  • The Dec22-Dec23 time spread is up to the highest since Sep 5.
    • Brent NOV 22 up 0.2% at 89.5$/bbl
    • WTI NOV 22 up 0.2% at 82.29$/bbl
    • WTI-Brent unchanged at -7.18$/bbl
    • Brent NOV 22-DEC 22 down -0.01$/bbl at 1.26$/bbl
    • Brent DEC 22-JAN 23 up 0.08$/bbl at 1.85$/bbl
    • Brent DEC 22-DEC 23 up 0.36$/bbl at 11.1$/bbl

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