- Oil prices traded higher Tuesday morning, with WTI up 50c to $67.88/Bbl (8:07 AM) after yesterday’s 6% plunge
- The premium of oil call options over the opposite puts has narrowed considerably, a sign that geopolitical risk premium has faded
- Focus turns to oil’s underlying fundamentals as traders discount the chances of Middle East conflict affecting oil supply
- Oil traders are split on whether OPEC+ will increase output at year-end (Bloomberg)
- The group, led by the Saudis, is due to begin an unwinding of supply cuts with a hike of 180 MBbl/d in December
- In a Bloomberg survey, sixteen of 30 respondents predicted that OPEC+ would opt to delay the supply increase
- AEGIS notes that one reason the group would delay is that Brent crude is near its lowest price level since late 2021
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