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WTI Eases Further As Weaker Demand Meets OPEC+ Supply Uncertainty

COMMODITIES
  • Crude erased earlier gains to be trading lower on the day, with a drop in WTI near the close after a volatile session. OPEC+ supply uncertainty is being weighed against a weaker demand picture, worsened by softer-than-expected industrial profits in China.
  • The OPEC+ meeting is scheduled for 1PM GMT (8AM ET) Thursday according to a draft agenda seen by Reuters. Separately, OPEC is considering deepening its oil production cuts despite reluctance from some members, an OPEC+ source told Reuters.
  • OPEC+ has still not reached an agreement on Nigeria/Angola production quotas for 2024 according to Chief OPEC correspondent Amena Bakr on X.
  • Saudi Arabia is asking other OPEC+ members to reduce their oil output quotas but some members are resisting, OPEC delegates said, cited by Bloomberg.
  • Efforts to refill the US emergency oil reserve are being hampered by companies delaying their return of borrowed barrels, according to Bloomberg.
  • WTI is -0.8% at $74.94 but not testing support at $72.37 (Nov 16 low).
  • Brent is -0.7% at $80.02 but not testing support at $76.60 (Nov 8 low).
  • Gold is +0.6% at $2013.42 having touched a high of $2018.21 overnight to pierce resistance at $2009.4 (Nov 7 high). The modestly softer USD index and rally in US Tsy yields has further supported this earlier move. A clear break of this hurdle would confirm a resumption of the uptrend and open $2022.2, the May 15 high.

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