- Oil prices are up more than $1 to $79.10 after geopolitical risk premium rises over the weekend
- Israeli troops clashed with Egyptian border guards, resulting in the death of one of the Egyptian soldiers, while Israel launched large airstrikes against Gaza
- OPEC will be meeting this Sunday to discuss the future of their supply reduction policy and decide whether to extend production cuts through the end of 2024
- Many analysts, including the International Energy Agency, expect an extension of the OPEC cuts
- If the production cuts are extended, the global oil market is expected to remain undersupplied through year-end
- Oil tankers idling in the North Sea indicating weak demand (BBG)
- Three tankers carrying Forties crude have been sitting off the coast of Europe for more than two weeks now, potentially indicating weak demand
- This is the first time in more than two years that cargoes of this crude grade have idled at sea, as tankers normally go directly to refineries after loading
- The European market appears to be oversupplied with oil, as flows from the US Gulf Coast have increased, and refinery demand in Europe has been sluggish
- Asian buyers have also been well-supplied by WTI and Murban crudes, which compete with Forties