What’s Affecting Oil Prices This Week? (Nov. 28, 2022)
Despite several developments on the horizon, Stratas Advisors continues to hold to their view that the price of Brent crude will average around $90 during the fourth quarter of this year. Here’s why.
Global Oil Market Signals Short-Term Weakness Ahead of EU Ban on Russian Oil
After months of strength, crude futures are flirting with lows not seen all year as top oil consumer China enters additional COVID-19 lockdowns while central banks hike interest rates to combat inflation.
BP Wins Contract to Market Guyana’s Share of Oil Production
London-based BP agreed to market Guyana’s share produced from the Liza Destiny and Liza Unity platforms at no charge per barrel, according to a ministry statement on Nov. 24. It replaces a Saudi Aramco trading unit, which previously held the contract.
Rising Enbridge Pipeline Apportionment May Spell Pain for Canadian Oil Patch
Enbridge will apportion December deliveries on its heavy crude system by 11% and ration space on the light oil system by 13%. The rationing is the highest it has been since last winter.
Saudi Denies Oil Output Hike Discussion, Says OPEC+ May Cut If Needed
The Wall Street Journal earlier on Nov. 21 reported an output increase of 500,000 bbl/d was under discussion for the next OPEC+ meeting.
Hess CEO Says OPEC ‘Back in the Driver’s Seat’ as US Shale Slows
OPEC’s agreed oil output cut in October was as much a political jab at U.S. President Joe Biden, who was trying to lower gasoline prices, as it was an economic move, Hess Corp. CEO John Hess on Nov. 17.
Saudi Crude Oil Exports Surge to 29-Month High
Saudi Arabia’s crude oil exports rose about 1.6% to 7.721 million bbl/d in September—the highest since April 2020—from 7.601 million bbl/d in August.
Russian Oil Output to Fall Next Year as EU Ban Takes Effect: IEA
“The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said.
Five Iran-Related Oil Tankers Lose Their Flags Following US Sanctions
The U.S. Treasury Department in early November imposed sanctions on a wide network of companies, people and vessels accused of concealing the Iranian origins of shipments and exporting them around the world.
India Can Buy as Much Russian Oil as It Wants, Yellen Says
“Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil,” Yellen said. “They’re going to be heavily in search of buyers. And many buyers are reliant on Western services.”