- Oil is trading higher, around $73.60, reversing losses from yesterday
- The Russian oil minister said that Russia will begin implementing the OPEC+ supply cut as early as December (Tass)
- Novak further added that OPEC+ nations are ready to deepen the cuts in 1Q2024 to avoid speculation and limit volatility
- ICE Brent open interest has fallen to the lowest level since January
- The Russian oil minister said that Russia will begin implementing the OPEC+ supply cut as early as December (Tass)
- Saudi Energy Minister says OPEC+ cuts can stay past March (BBG)
- Saudi Energy Minister Prince Abdulaziz said that the supply reductions of more than 2 MMBbl/d would only be withdrawn after considering market conditions and using a phased-in approach
- He added, "I honestly believe that the 2.2 million (barrel per day supply cut) will overcome even the usual inventory build that usually happens in the first quarter.”
- Speaking on the matter of Russian production, he said OPEC would prefer if Russia reduced production instead of exports but acknowledged that it is difficult for Russia to cut production in the winter due to weather conditions
- Black Sea storms reduce Russian exports to a three-month low (BBG)
- The four-week average of Russian crude exports has fallen to the lowest level in three months as storms in the Black Sea have impacted loading and port activities
- Exports fell to 3.04 MMBbl/d, down from the previous week by 125 MBbl/d
- During Q1 2024, Russia will deepen its export cuts to 500 MBbl/d below the average May-June levels, spread across crude and refined products
- Chinese refiners buying less Venezuelan crude (BBG)
- The reduction in US sanctions and a tighter market for heavy-sour crudes has shrunk the discount on Venezuelan oil, leading Chinese refiners to reject offers
- India has emerged as a buyer, purchasing Venezuelan shipments offered around $8/Bbl below ICE Brent
- Venezuela’s flagship Merey crude is currently trading at a discount of around $6-9/Bbl to ICE Brent