- Oil soars to highest since August 2022 amid growing concerns of tight supply
- October ’23 WTI gained $1.57 this morning to trade around $93.05/Bbl
- U.S. oil output from top shale-producing regions is set to drop from 9.43 MMBbl/d in September to 9.39 MMBbl/d in October, its lowest since May 2023, marking a three-month decline, said EIA in its recent DPR
- After Saudi Arabia and Russia extended their combined supply cuts of 1.3 MMBbl/d to year-end, prices are supported by worries about significant supply deficits in 4Q 2023
- Central banks from the U.S., Britain, Japan, Sweden, Switzerland, and Norway are set to announce interest rate decisions this week
- Saudi defends production cuts as oil industry questions IEA's forecast accuracy (CNBC, Bloomberg)
- Saudi Arabia’s energy minister defended its decision to extend oil production cuts and said they’re not about “jacking up prices”
- He emphasized OPEC's commitment to oil market stability and global energy security, adopting a proactive, preemptive, and cautious approach amid various uncertainties
- At the World Petroleum Congress, leaders, including Saudi Arabia's energy minister, the head of a group of African oil producers, and the premier of Alberta challenged the IEA's forecast of oil demand peaking before 2030 and its call for a demand reduction to 25 MMBbl by 2050 for net zero
- Abdulaziz criticized the IEA, noting their predictions often missed the mark and that they've shifted from market assessment to political advocacy
- Market eyes $100 oil, but non-OPEC supply might hold it back (Bloomberg)
- Energy Aspects’ Amrita Sen expects a "temporary upswing in crude" that could nudge Brent above $100 by the end of October
- Citigroup analysts, led by Ed Morse, believe that prices might briefly surge above $100 due to technical traders and geopolitical risks
- However, with an added 1.8 MMBbl/d supply from non-OPEC countries like Canada and Brazil, sustained $90 prices appear unlikely, added Citigroup analysts