US Weekly Oil Summary: US to Buy 3m bbl for SPR

The US Energy Department is seeking to buy 3mn bbls of crude for the US SPR with March delivery according to an official solicitation.

• US crude stocks showed a larger than expected draw with an increase in refinery runs and drop in production from the record levels. Crude stocks fell 4.633m bbl compared to an expected 774k bbl.
• US oil and gas rig count rose by 1 to 626 rigs, according to Baker Hughes Dec. 8, the highest since the week ending Sep. 22.
• A segment of the Colonial Pipeline which is rarely full is booked for months amid a supply glut on the US Gulf Coast according to Bloomberg.
• In response to Venezuela’s bellicose rhetoric vis a vis Guyana, US Southern Command has confirmed that in collaboration with the Guyana Defence Force, it would conduct flight operations within Guyana on 7 Dec.
• USD: Overall, the USD index trades around half a percent higher on the week. Despite some extreme volatility across the G10 currency space, the greenback has extended its recovery from the late-November lows and has most recently been underpinned by a firm US jobs report as we approach next week’s busy calendar, including both US CPI and the FOMC rate decision.
• Nonfarm payrolls employment was slightly stronger than expected in November (199k vs cons 185k) but offset by a -35k two-month revision (all back in Sep).
• The Services PMI accelerated to 52.7 (52.3 expected, 51.8 prior), with new orders steady at 55.5 (54.9 expected, 55.5 prior), and prices paid dipping to 58.3 (58.0 expected, 58.6 prior).