Supply Side Matters Eyed

Any fiscal impulse/tailwinds via a weaker USD were negated in Asia-Pac hours, with WTI & Brent sitting ~$0.20 below their respective settlement levels at typing.

• This comes after the benchmarks added ~$1.30 apiece on Thursday, aided by supply side dynamics. Most notably, WSJ sources suggested that "Saudi Arabia is considering canceling OPEC plans for an oil output hike early next year, as Covid-19 cases in many parts of the world rise and the expected return of Libyan crude threatens to swell global supplies."
• Elsewhere, the latest BSEE count pointed to over 90% of U.S. Gulf of Mexico crude production being shut in owing to weather conditions vs. ~82% 24 hours before.
• The Norwegian oil union negotiations are also dragging on, with parties set to meet later on Friday.