The alliance is scheduled to meet at the weekend amid fears of oversupply. Brent crude futures then rose above $81 a barrel as the US dollar weakened. Oil then rose after a two-day swing as investors looked to an OPEC+ meeting on supply policy that will shape market balances until… In 2024, the weak US dollar also makes commodities more attractive. Brent crude rose above $81 a barrel after rising more than 4% on Friday after a decline of the same size the previous day. WTI traded at over $76 after a volatile ride as well.
The Organization of the Petroleum Exporting Countries and its allies are scheduled to meet over the weekend to review the global crude market and set priorities before the new year. With prices falling year-to-date after a four-week streak of weekly losses, there is speculation that supply restrictions will be extended. “We still expect Saudi Arabia and Russia to extend their additional voluntary cuts into early 2024,” said the head of commodities strategy. “But what is less clear is whether the broader OPEC+ group will make further cuts.”
Crude oil has faced headwinds over the past month, as the war risk premium resulting largely faded, and concerns mounted about strong supplies, including from non-OPEC+ countries. As US inventories swelled and time frames pointed to weaker conditions, hedge funds cut their bets on oil to the lowest bullish level in 20 weeks. Crude oil gained additional strength from the weakness of the US dollar.
Bloomberg dollar gauge declines 0.2%
The Bloomberg dollar gauge fell 0.2%, heading for its lowest closing level since late August. This makes the goods more attractive to most overseas buyers. Meanwhile, in the Middle East, shipping risks were in focus after Iran-backed Houthi rebels seized a Japanese charter ship in the Red Sea. She said that the Galaxy Leader vehicle carrier was hijacked in the southern part of the waterway on Sunday.
OPEC+ remains positive about oil demand growth ahead of the meeting. The global economy is in good shape despite the challenges. Al-Ghais says that oil consumption continues to rise significantly, and OPEC+ still has positive expectations for oil demand growth, despite the headwinds that… The global economy faces it, as it prepares for its next ministerial meeting.
OPEC Secretary-General Haitham Al-Ghais said during the Argus European Crude Oil Conference in London on Tuesday that the economy, despite the challenges, is still in good condition. “We are positive on demand, and we remain very strong on demand.” The senior official at the Organization of the Petroleum Exporting Countries said he could not anticipate the results of the group’s next ministerial meeting at the end of the last week of November. “All I can say now is that we continue to monitor the fundamentals of supply and demand on a daily basis,” Al-Ghais said. He added, “When the ministers meet in Vienna at the end of this month, they will review all of this and take appropriate measures.”
The next OPEC+ meeting could see Russia and Saudi Arabia decide whether to continue their additional voluntary supply curbs until 2024. On Sunday, Riyadh and Moscow announced they would stick to production cuts totaling about 1.3 million barrels per day in December
A record number of giant tankers are heading to collect American oil
I think the US economy is in very good shape. Al-Ghais said that Europe may suffer somewhat. He added: “We are still talking about the growth of the Chinese economy by more than 4.5% to 5%” and that the overall global demand for oil continues to rise significantly. Nearly 50 tankers are heading to the US amid OPEC+ supply restrictions and some ships are sailing to the US Gulf without cargo bookings.
A record number of supertankers are headed toward the United States to load oil, as shipowners look to benefit from a surge in the country’s crude exports. Forty-eight ships are scheduled to head to the country over the next three months, according to data on Friday. This is the largest number in at least six years. The influx of ships may illustrate the changing energy landscape as the United States pumps more crude oil than ever before and the Organization of the Petroleum Exporting Countries and its allies seek to support the market through supply constraints.
Government data show that US crude oil exports and American producers are increasingly sending low-sulfur “light sweet” oil abroad, while many domestic refineries prefer to fill their rolls with heavier grades that produce more diesel-type fuels. The country lifted decades-old restrictions on crude oil exports in 2015, and they have increased this year
“US menu improvement is pushing additional volumes of American snack sweets into the waterborne market,” said Richard Price, oil markets analyst at Energy Aspects Ltd.
Shipments from the US Gulf Coast – the main export region – are expected to rise by 100,000 bpd year-on-year next month to 4.1 million bpd.
OPEC+ restrictions push tankers to leave the Middle East
According to the researcher. He added that OPEC+ restrictions are pushing tankers to leave the Middle East in search of better prospects in the Atlantic Ocean for the winter season. The abundance of ships racing to the American Gulf even includes ships headed to the region on a speculative basis without any reservations for the cargo, an industry practice known as ballast, according to EA Gibson, a London-based ship broker.
Strong winter demand could mean higher profits for those tankers when they reach the US The number of oil rigs drilling in the U.S. rose by 6 to 500, the largest weekly jump since late February, according to data from The number of oil rigs drilling in the U.S. rose by 6 to 500, the largest weekly jump since late February. United States increased by 6 to 500, the largest weekly jump since late February, according to data released by Baker Hughes on Friday. This support was led by explorers in the Permian Basin in West Texas and New Mexico, where four oil platforms were added. This is the largest increase in the region since mid-March
Rig activity has shown signs of coming back to life in the recent past, but has fallen to new lows this year. Opinions from the largest onshore rig contractors during the latest round of earnings calls indicated that activity should emerge and drilling growth should return in the final three months of the year. Oil production from the Permian Basin is expected to expand through the end of this year, according to a report released this week by the U.S. Energy Information Administration. It’s a more optimistic forecast from the government agency than the previous month. Oil production from the Permian Basin has expanded through the end of this year
