- Oil heads for the first weekly gain in five weeks
- Yesterday, oil fell about $2 following the announcement of further OPEC+ production cuts
- The Department of Energy awarded contracts to purchase 2.73 MMBbls for the SPR at an average price of $79.1
- Brazil to join OPEC+ without cap on production (Reuters)
- Brazil is expected to join the organization in January but will not be subject to the group’s coordinated production caps
- Brazil is the largest oil producer in South America, producing 3.7 MMBbl/d
- US crude exports reach record high (BBG)
- According to the EIA, the US exported nearly 4.5 MMBbl/d last week, which would be the most on record
- The EIA also reported a sixth consecutive weekly storage build, although inventories in the Gulf Coast declined due to stronger refinery runs
- Panama Canal backlog may impact shipping through the Suez Canal (BBG)
- Record congestion at the Panama Canal due to low water levels could lead to delays at the Suez Canal in Egypt
- According to the largest Greek shipping company, “Suez will need to take a lot more vessels” and that “That means that the waiting time on both ends will likely increase”
- Some ships have been forced to take a significantly longer journey around South America instead of using the Panama Canal