OPEC day

Today, the OPEC ministerial meeting will be held in Vienna. We expect OPEC members to stick to their production policy and increase targeted group-wide production by 0.4 mb/d. While the political pressure is mounting for Saudi Arabia – the historical partner of the US in the Middle East – there are good reasons for maintaining a cautious approach to the current market environment. With sweet-sour crude physical spreads widening, struggling loading programs in West Africa and low OSPs, OPEC clients are not showing great signs of buying frenzy. Furthermore, Dubai time spreads have eased over the last few days, in line with WTI and Brent spreads. Looking at inventories, we learned yesterday that US crude inventories continued to build by close to 4 mb, in line with seasonal patterns and low refining activity. Japanese crude inventories on the opposite dipped by another 5 mb despite low refining utilization rates. Most of Kayrros’s weekly reduction in onshore inventories are located in India, which also contribute to a tighter Asian crude market, in line with a general recovery in Asian refined product demand.

source: PAJ

Share this news :

You might also read :

ES-oil
December 10, 2021

CPI day

ICE Brent futures remained supported, above 74 $/b at the prompt, but could experience high volatility today during US market hours, as the BLS releases US…
ES-economy
June 22, 2021

The market in search of certainty

Bond yields have rebounded, equities as well and the USD has lost some ground, the EUR/USD exchange rate returning above 1.19… before falling back below…
ES-gas
August 24, 2021

Mixed price evolution

European gas prices were mixed yesterday, torn between the impacts of technical rebound after last week’s strong losses and a more comfortable outlook for Russian…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]