- Oil trades lower as macro-economic concerns counter tight supply
- November ’23 WTI lost $1.74 this morning to trade around $87.49/Bbl
- The market focuses on the implications of interest rates staying higher, especially since key Treasury bond yields (like the 10-year and 30-year) have reached 16-year highs
- The US dollar also remains near 10-month highs, contributing to recent pressure on crude prices
- On Wednesday, Saudi Arabia and Russia reiterated that they would stick to their output cut of 1 MMBbl/d and export cut of 0.3 MMBbl/d through December, respectively, on top of earlier OPEC+ cut
- However, Russia may soon relax its diesel ban, according to a Kommersant report on Wednesday citing anonymous sources
- According to OPEC’s recent monthly report, the oil market is projected to be in a 3.3 MMBbl/d deficit for the fourth quarter
- Keystone flows halted amid tight U.S. crude supply (Bloomberg)
- TC Energy's Keystone pipeline flows fell to zero on Tuesday, impacting impacting Cushing delivery hub with already low crude inventory levels
- The 0.6 MMBbl/d system, which carries heavy Canadian oil-sands crude from Alberta as far south as the US Gulf Coast, halted shipments by late Tuesday morning, based on Wood Mackenzie data
- TC Energy said it performs maintenance on the Keystone pipeline, sometimes operating it at reduced rates
- The current Keystone halt coincides with Cushing, Oklahoma's lowest crude inventories for this time of year in nine years
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Russia mulls exempting fuel producers from export ban (Bloomberg)
- Russia is considering allowing only fuel-producing companies to export diesel while maintaining the ban on gray-market exporters
- The initial export ban, which also included gasoline, was aimed at controlling domestic fuel prices ahead of the upcoming presidential elections
- While discussions continue, a decision on modifying the ban might be reached this week, according to people familiar with the matter