- Oil prices are mostly unchanged this morning, around $83.72, ahead of the EIA storage report
- The API forecasts a 2.7 MMBbl inventory draw and a 0.5 MMBbl build at Cushing
- Outages at the Osage and Cushing South pipelines may have limited flows out of Cushing, and increased freight costs in the Gulf Coast may have limited exports, leaving more crude in storage at Cushing
- The API forecasts a 2.7 MMBbl inventory draw and a 0.5 MMBbl build at Cushing
- Pierre Andurand says for Saudi Arabia to ease production cuts, oil must hit $110 (BBG)
- Oil trader Pierre Andurand of Andurand Capital Management said, “The Saudis will have to decide when and at what price to bring supply back,” adding further, “For me, an adjustment likely will have to come around $110 a barrel, so there’s room to the upside for prices”
- Since July, Saudi Arabia has said they will implement a unilateral production cut of 1 MMBbl/d on top of the existing OPEC cuts
- Andurand also said that they see oil demand hitting a record high later this decade before declining
- Canadian Transmountain Pipeline expansion may need external funds (BBG)
- The long-delayed and over-budget pipeline, owned by the Canadian government, may require external financing just months before the expected startup, according to the country’s Auditor General
- The Office of the Auditor General said, “If the corporation cannot finance the full remaining construction of the pipeline expansion, it will be unable to put the expanded pipeline into service to generate revenue”
- The expansion, which has so far cost $22.2 Billion USD, will more than double the amount of capacity on the existing Transmountain pipeline, which ships oil from Alberta to Vancouver, British Columbia