- Oil trades lower amid concerns of weaker demand
- WTI is down nearly 5% this week and is currently trading around $88/Bbl
- Increasing viral outbreaks show the challenges China’s Covid-zero plan is facing despite its widespread lockdowns and testing
- Cases in Beijing reached their highest level in more than five months
- Concerns about economic growth and demand disruptions continue to grow as the country upholds its strict Covid-zero policy
- IEA director Fatih Birol criticized OPEC+'s decision to cut oil output last month, saying it will worsen the outlook for countries headed toward a recession
- “The recent decision of OPEC+ to cut the production by 2 MMBbl/d was definitely not helpful,” said Birol at the COP27 summit
- He added that the move might require a "rethink" because it is fueling inflation, particularly in developing nations
- The EU and Asia rush to secure Middle Eastern oil for 2023 as sanctions on Russian crude approach (BBG)
- Starting on December 5, the purchase of seaborne cargoes from Russia will be banned for almost all companies in the EU
- Refiners in Europe and Asia are trying to maintain or increase the volume they receive from the Middle East amid speculation that Russian exports will fall as the sanctions come into effect
- Officials in Asia say that their requests have been met. There is, however, no assurance that every buyer will be so fortunate given that the region's producers, including Saudi Arabia, have committed to reducing output
- The uncertain factor, however, is still the bleak demand outlook driven by recessionary pressure and ongoing viral lockdowns in China
- An isolated fire broke out last night at Chevron’s 269 MBbl/d refinery in El Segundo, California, that was extinguished within two hours (Reuters)
- The cause of the fire and the equipment affected is still unclear; The El Segundo refinery supplies 20% of the motor vehicle fuel and 40% of the jet fuel used in southern California, according to Chevron’s website
- The fire at the Chevron facility came after many of California’s refineries were partially down in October due to planned maintenance work