- WTI traded in under $75/Bbl as investors assessed a surprise build in U.S. crude inventories and Chinese economic concerns
- Oil inventories gained for the first time in eight weeks, according to government data
- China’s factory activity contracted in September for the first time since the pandemic began amid widespread electricity rationing (Bloomberg)
- The added use of oil for power generation and heating this winter making up for the shortfall of natural gas in Europe and Asia means that OPEC+ may need to step in with extra barrels, Rystad Energy said (Bloomberg)
- An energy crunch this winter may add nearly 1 MMBbl/d of oil demand by the end of the year
- Rystad noted that the 1 MMBbl/d is on top of the already rising demand for transportation fuels recovering from the pandemic
- OPEC+, who meets Oct. 4, is likely to stick to an existing deal to add 400 MBbl/d to its output for November, according to sources reported by Reuters
- “So far we will keep the plan to increase by 400 MBbl/d,” one of the sources said
- OPEC Secretary-General Mohammad Barkindo said the current OPEC+ deal is helping to keep the oil market balanced
- AEGIS notes that in the face of a global energy crunch this winter, many analysts are calling on OPEC+ to increase their output further to help meet additional oil demand