US Weekly Oil Summary: Further Crack Down on G7 Price Cap Violators

The US Treasury Department imposed sanctions on three entities after it identified three vessels that used price cap coalition services while carrying Russian crude oil above the G7 price cap of $60/bbl.

• US crude production in September hit a new monthly record of 13.24m b/d, according to EIA data Nov. 30.
• Crude stocks showed a larger than expected build with production holding at record levels despite ongoing strong exports and a drop in imports.
• Efforts to refill the US emergency oil reserve are being hampered by companies delaying their return of borrowed barrels, according to Bloomberg.
• US total oil and gas rig count rose by 3 on the week to 625, according to Baker Hughes Dec. 1
• Banned Venezuelan opposition candidates barred from public office will be able to appear before the country's top tribunal, which will rule on their bans according to the Venezuelan government.
• Real US GDP was stronger than first thought in Q3, revised to 5.15% annualized (cons 5.0, initial 4.88) in the 2nd Q3 release, from 2.06% in Q2. However, and importantly, personal consumption was weaker than first thought, albeit at a still strong 3.59% (cons 4.0, initial 3.98) after 0.8% in Q2.
• The Chicago Business Barometer™, produced with MNI surged +11.8 points to 55.8 from 44.0 in October. This represents the first expansionary reading since August 2022.
• Initial jobless claims increased to a seasonally adjusted 218k (cons 218k) in the week to Nov 25 after a slightly upward revised 211k (initial 209k).
• PCE core services ex-housing 0.148% M/M after an upward revised 0.447% M/M (initial 0.42).
• ISM manufacturing surprisingly held steady at 46.7 (cons 47.8) after 46.7. That consensus was probably higher after yesterday’s surge in the MNI Chicago PMI.