- Saudi Arabia and the UAE reached a compromise that will allow the UAE to increase the amount of oil the OPEC member can produce as part of a wider agreement (WSJ)
- The deal is part of a wider agreement with Russia-led producers to boost global supplies, according to people familiar with the matter (Bloomberg, WSJ)
- In the compromise reached Wednesday, the UAE will be able to increase its baseline quota to 3.65 MMBbl/d starting in April from the current baseline of 3.2 MMBbl/d
- Oil prices are steady following the news of the OPEC+ agreement
- AEGIS notes that the market was likely pricing in a no-deal or no supply increase for August. A deal now may mean OPEC+ could increase supply for August if enough time remains to notify their customers
- Government oil inventory data from the EIA is due at 9:30 am CST
- The average Bloomberg survey of economists is expecting a 4.3 MMBbl withdrawal
- If confirmed, the decrease would be the eighth consecutive weekly draw in crude stocks
- The American Petroleum Institute, an industry group, said crude inventories fell by more than 4 MMBbl last week