- Oil heads for a significant weekly gain amid risks of supply loss
- March ’23 WTI gained nearly 80c this morning to trade around $79/Bbl
- Crude is set to gain more than $5/Bbl, or 8% this week
- OPEC+ group indicated to maintain output despite Russia’s plans to cut production by 0.5 MMBbl/d in March (BBG)
- The bloc added that they remain apprehensive that a resurgence in covid cases may hamper China's economic recovery
- Crude prices rose earlier in the week following production disruptions caused by the Turkey earthquake and a technical issue at a North Sea field
- Prices came under pressure in the second half of the week amid Fed's signal that rate hikes would continue and weak Chinese economic data
- Russia said it would cut oil output by 0.5 MMBbl/d in March (Bloomberg)
- The production cut is in retaliation to Western sanctions and price caps, according to a statement from Deputy Prime Minister Alexander Novak
- Russia discussed its voluntary oil output cut with some OPEC+ members, Interfax reported, citing Kremlin spokesperson Dmitry Peskov
- The cut would deepen the 2 MMBbl/d OPEC+ supply cuts that last until the end of 2023, and delegates of the bloc signaled they wouldn't increase production to make up for Moscow's supply cuts