- Oil is trading higher, around $73, after a $2 rally yesterday
- Yesterday, it was reported that a 300 MBbl/d oil field in Libya was shut down due to protests, as well as continued geopolitical risk in the Middle East
- The API estimates a draw of 7.4 MMBbls from US inventories, with official EIA data being released later today
- Robust supply has some seeing tough year for oil prices (BBG)
- Rising oil output from non-OPEC+ countries could outstrip global demand growth in 2024, with some market participants skeptical that OPEC’s production cuts will sufficiently tighten the market
- Commodity trading fund Northern Trace Capital said they see 2024 as potentially risky for oil prices, with the market relying heavily on OPEC+ for support, and that a collapse in the group's agreement to curb supply could send oil prices significantly lower
- According to the CFTC's report on trader positioning, speculators have their lowest net-long position in more than ten years, signaling increased bearish sentiment
- India’s imports of Russian oil become more costly (BBG)
- Government data shows a significantly reduced discount of Russian oil imported into India in November, with prices at the highest level in a year
- Refiners paid an average of $85.90/Bbl for Russian oil, up 1.8% from October
- Crude imports from Iraq averaged $85.70, and imports from Saudi Arabia averaged $93.30
- The smaller discount has led buyers to seek alternative crude grades from the Middle East
