- Oil is trading modestly higher, around $72.50, ahead of the January WTI contract expiry
- Russian refinery throughput rates have increased to the highest level since April, which has been attributed to a resumption of operations at Black Sea refineries, which were curtailed due to storms
- Russia is expected to deepen its cut of crude and product exports in December to 500 MBbl/d from 300 MBbl/d
- Nigeria announced they will be increasing production to 2 MMBbl/d in 2024 after overhauling security measures
- Russian refinery throughput rates have increased to the highest level since April, which has been attributed to a resumption of operations at Black Sea refineries, which were curtailed due to storms
- Number of DUCs falls to record low (BBG)
- The number of drilled but uncompleted wells fell to a record low of 4,415 in November as shale drillers brought more quick-turnaround wells online
- The Bakken and Eagle Ford have led the decline in DUCs
- This has allowed producers to bring more production online while using fewer rigs
- US announces Red Sea Task Force to protect shipping (BBG)
- The US Secretary of Defense has announced a new task force intended to protect commercial shipping in the Red Sea, following numerous attacks by Houthi rebels
- The attacks have prompted several shippers to halt operations in the area, including BP and Maersk
- However, Goldman Sachs recently said that the issues should only have a limited effect on oil prices
- Due to vessel redirection, production in the region should not be impacted, but a hypothetical redirection of all 7 MMBbl/d of oil flows could increase spot prices by $3-$4 compared to long-dated prices