- Oil trades at a five-month low, nearing $70/Bbl
- Yesterday, Moody’s downgraded their outlook on China from stable to negative, citing increased risks to the country’s economic outlook
- The API estimates a crude storage build of 0.6 MMBbls and a Cushing build of 4.3 MMBbls
- Asian crude buyers likely to buy more from the spot market (BBG)
- Saudi Arabia reduced its selling price of Arab Light by half the amount forecasted in a recent Bloomberg survey, which could lead buyers to turn toward the spot market
- Two customers who receive contractual supply from Saudi Arabia have said they’re considering reducing their intake for January
- In the Persian Gulf spot market, prices fell sharply this week, potentially leading consumers to look away from contracted purchases
- Record US exports are weighing on oil market (BBG)
- US crude exports are nearing 6 MMBbl/d, pressuring prices in Europe and Asia
- According to ship-tracking firms Kpler and Vortexa, the week ending December 1 saw 5.7 MMBbl/d of US crude exported, which, if confirmed by the EIA, would be a new record
- The higher exports come as US production has surged to a record high of 13 MMBbl/d, which has caught many market participants by surprise
- The increased supply has led to weaker time spreads, which show signs of an oversupplied market into May 2024