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No word that OPEC+ will be changing output policy for now

  
Analysis, Crude

Not much indication just yet that OPEC+ will respond to the anticipated SPR release by US and its allies

There was talk earlier in the day that OPEC+ may reconsider their position going into next week’s meeting but reputable oil journalist, Amena Bakr, has said that there hasn’t been any word that the bloc is planning to “change” output policy yet.

 

I reckon we’ll have to see how things go with the SPR release and how many countries are involved, alongside the oil market reaction, before OPEC+ plans anything surely.

Oil update – Biden’s SPR release plans and the expected OPEC+ response

  
Analysis, Crude

Updating the latest on oil from Monday US time, in brief:

The talk on the oil reserve release is US President Biden is said to be preparing to announce a strategic petroleum reserve release alongside similar from other countries ( India, Japan and South Korea included)

  • amount released is expected to around 35mbbl over time,
OPEC said such a release is not justified given current conditions in the market
  •  and would reconsider plans to add more oil production when they meet next week
On the demand side, rising coronavirus cases in Europe and associated movement-limiting restrictions weigh.
Updating the latest on oil from Monday US time, in brief:

30 member countries in the International Energy Agency (IEA) hold oil in reserves

  
Analysis, Crude

With all this talk of tapping into oil reserves here’s an explainer on what they are who has these strategic stockpiles.

  • The US reserve currently holds about 606 million barrels …  enough oil to meet U.S. demand for more than a month … also maintains small heating oil and gasoline reserves in the U.S. Northeast.
  • Besides the United States, the other 29 member countries in the International Energy Agency (IEA) … are required to hold oil in emergency reserves equivalent to 90 days of net oil imports. Japan has one of the largest reserves after China and the United States.
That’s from the Reuters explainer, link here if you are interested.
With all this talk of tapping into oil reserves here's an explainer on what they are who has these strategic stockpiles. 

US crude oil futures settle at the lowest level since October 7

  
Analysis, Crude

Settles at $78.36. Down $2.40 or -2.97%

The US crude oil futures are settling at the lowest level since October 7. The price is settling at $78.36. That’s down $2.40 or -2.97%.
The move to the downside was spurred on by report that the US strategic petroleum reserves fell 3.2 million barrels to the lowest level since June 2003.
The low for the day reached $77.71. The high was up at $80.66.
Settles at $78.36. Down $2.40 or -2.97%_

DOE crude oil inventories -2.101M versus 1.398M estimate

  
Analysis, Crude

The weekly EIA energy inventory levels

  • Crude oil -2.101M versus estimate of 1.398M. Last week crude inventories rose 1.0M
  • Gasoline -0.132M versus estimate of -0.575M. Last week gasoline inventories felt -0.122M
  • Distillates -0.824M versus estimate of -1.229M. Last week distillates fell -2.613M
  • Cushing 0.216M versus last week -0.034M.
  • Refining utilization 1.200% versus expected 0.7%
  • crude oil production 11.4M barrels versus 11.5M last week
The private data released late yesterday showed:
  • Crude oil, build of 0.655M
  • Gasoline, draw of -2.792M
  • Distillates, build of 0.107M
  • Cushing, draw of -0.491M
The crude oil drawdown is a surprise given the expectations and the private data
The price of crude oil was trading down one dollar at $79.83 (December).  The price is currently trading at $79.89.

EIA says any release of oil from SPR would only have a short lived impact

  
Analysis, Crude

The acting head of the US energy information administration

The acting head of the US Energy Information Administration (EIA) is saying that any release from the US strategic petroleum reserve (SPR) would have only short-lived impact on oil markets.
The the price of crude oil has moved up toward $80.55 from about $80.30 ahead of the comment.

An oil ICYMI – Saudi, UAE signal yet again that OPEC will not succumb to US pressure to pump faster

  
Analysis, Crude

Comments from UAE Energy Minister Suhail Al Mazrouei in an interview in Abu Dhabi, where he’s attending the ADIPEC oil and gas conference.

Said on the currently planned increasing daily output by 400,000 barrels per month
  • “That should be enough”
  • the oil market will switch from a supply deficit to a surplus early next year and that’s one of the main reasons for OPEC+ not to be more aggressive
These remarks were backed up by the Saudi Energy Minister Abdulaziz bin Salman
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For more, link. Please note this from Monday, its not breaking news.
Comments from UAE Energy Minister Suhail Al Mazrouei in an interview in Abu Dhabi, where he's attending the ADIPEC oil and gas conference.
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