- Oil trades higher as Saudi Arabia and Russia reaffirmed their cooperation to stabilize the oil market
- November ’23 WTI gained $1.51 this morning to trade around $85/Bbl
- Yesterday, prompt WTI and Brent finished lower by $2.48 and $1.83, respectively, as geopolitical risk premiums priced into the market on Monday due to the Israel-Hamas conflict's impact on supplies appears limited
- Saudi Arabia and Russia reaffirmed their commitment to stabilizing the oil market and hinted at potential additional measures for next year
- OPEC+ today released their monthly oil report, maintaining a forecast of a 3 MMBbl/d deficit for 4Q and made little changes to the 2024 supply and demand forecast
- IEA also released its monthly report, in which the bloc noted preliminary signs of demand destruction in US gasoline demand
- Additionally, EIA's STEO estimates US crude production to hit a record 13.16 MMBbl/d in the fourth quarter, an increase from the previous estimate of 12.9 MMBbl/d
- OPEC leaves global oil demand forecast mostly unchanged
- OPEC, in its monthly report, left crude demand projections unchanged at 2.4 MMBbl/d for 2023 and 2.2 MMBbl/d for 2024
- On the supply side, non-OPEC+ 2023 supply is forecast to rise by 0.1 MMBbl/d to 1.7 MMBbl/d, driven primarily by the US, Brazil, and Norway
- Based on OPEC’s secondary sources, September crude production rose by 0.27 MMBbl/d to 27.75 MMBbl/d, with significant contributions from Nigeria, Kuwait, and Saudi Arabia
- IEA cuts 2024 demand growth forecast, citing economic headwinds
- IEA, in its monthly report, increased its 2023 demand forecast by 0.1 MMBbl/d to 2.3 MMBbl/d, reaching a total of 101.9 MMBbl/d, with China accounting for 77% of the growth
- The bloc added that demand destruction is evident as September's preliminary data shows US gasoline consumption sinking to its lowest in two decades
- Amidst efficiency gains and a deteriorating economic climate, the IEA has trimmed the 2024 demand growth forecast by 0.09 MMBbl/d to 0.9 MMBbl/d
- While the 2023 supply growth forecast remains unchanged at 1.5 MMBbl/d, the group increased its supply growth forecast to 1.7 MMBbl/d, with non-OPEC+ nations expected to produce more