- Oil extends gains amid easing demand concerns
- WTI rose by $1.18 to trade above $76/Bbl this morning
- Both OPEC+ and the IEA released their monthly reports, with OPEC+ maintaining its forecasts for the rise of demand in 2022–23 and the IEA slightly increasing its forecasts
- Crude prices rose following lower-than-expected CPI data yesterday, indicating that US inflation is slowing
- The market awaits today's US Fed monetary policy decision, with a 50-basis point rate hike widely expected
- The 0.622 MMBbl/d Keystone pipeline remains shut, but TC Energy is aiming for a segment to restart partially today and a full restart on Dec 20
- IEA expects oil prices to increase in 2023 as Russian exports decline (BBG)
- In its December monthly report, IEA raised its 2022 global demand forecast by 0.14 MMBbl/d to +2.3 MMBbl/d, noting robust Gasoil use in key consumer nations in 4Q22
- The group also slightly increased its forecast for demand growth in 2023 by 0.1 MMBbl/d to +1.7 MMBbl/d as a result of a recovery in Chinese demand and strong growth in India
- "While lower oil prices come as a welcome relief to consumers faced by surging inflation, the full impact of embargoes on Russian crude and product supplies remains to be seen," said IEA
- The organization sees Russian production to decline by 1.4 MMBbl/d next year
- In its December monthly report, OPEC+ maintained its 2022 forecast for the growth of global demand at +2.5 MMBbl/d (BBG)
- The group revised its 1Q23 demand forecast by 0.4 MMBbl/d but kept its 2023 global demand growth forecast at +2.2 MMBbl/d
- The bloc listed Geopolitical tensions, the global economy, and China's COVID-19 crisis as areas of uncertainty