- West Texas Intermediate fell to $72/Bbl Thursday morning following a rise in gasoline and diesel stocks last week, and the market continues to digest an OPEC+ compromise
- The EIA reported a decline in oil stocks yesterday, but both gasoline and diesel stocks rose
- The UAE and Saudi Arabia are nearing a compromise that could give the Emirates a more generous output limit next year and allow the whole OPEC+ group to pump more oil in the coming months (Bloomberg)
- Talks between the UAE and Saudi Arabia are still ongoing and would additionally need support from the broader OPEC+ group
- The oil markets seemed to initially perceive a compromise as slightly bearish as the price has come down since the announcement
- However, continued coordination to manage the additional supply from OPEC+ should be supportive for the market, considering the alternative could be a breakdown and a pump at will scenario
- An air travel recovery in Asia will take years (Bloomberg)
- Asian air travel may take another three years to recover fully from the pandemic, lagging behind other regions
- It will take until 2024 for international air travel to reach pre-Covid levels in the region, according to the International Air Transport Association