- WTI is up 77c to $43.83/Bbl, and Brent is up 72c to $46.78/Bbl
- WTI inter-month price spreads flipped to backwardation by most since the onset of the COVID-19 pandemic
- A backwardated curve implies a need for crude to be released from storage into the market. Demand resilience in India and China has likely bolstered the near-term prices in the futures curve
- Hedging activity may also be fueling the rise in the time-spreads, as producers look to lock in future sales prices by selling on the back of the vaccine-driven rally
- OPEC+ is likely to delay its planned 2 MMBbl/d January production ramp-up by three months (Goldman)
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- According to GIR, an extension would see the global market enter into a 1 MMBbl/d deficit in 1Q2021, after a brief return to a surplus in December 2020
- UAE's push to increase its specified quota may complicate talks, but ultimately a deal is expected to be reached
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- Aramco confirms attack on Jeddah fuel facility (Bloomberg)
- The damage from the Quds-2 rocket was minimal as firefighters were able to out the blaze in less than 40 minutes
- No oil products were lost as a result of the attack, and the damaged tank should be repaired in a few weeks