- Oil is trading lower, around $75, following weak economic data this morning
- Initial jobless claims came in higher than expected, and industrial production was lower than anticipated
- The Biden administration announced that the US will be enforcing sanctions against Iran, saying that their export numbers will come down after sanctions are enforced
- OPEC+ could surprise with deeper supply cuts, says JPM (BBG)
- JPMorgan’s head of energy strategy said that while it is not the most likely outcome, the market is discounting the chance of deeper oil supply reductions
- He added further, “The market’s probably assuming very little chance of that happening; I’d say it's much higher than that – not as a base case but as a scenario”
- OPEC+ will be meeting on November 26 to determine the future of their output cuts
- US crude inventories at the highest level since August (BBG)
- Inventories rose for the fourth consecutive week, reaching the highest level since August, with the Cushing build being the largest since January
- Higher inventories could weigh on the WTI prompt spread, which is already in contango, as the prompt month contract trades at a discount to future months
- The EIA released its new methodology for crude oil supply, which aims to address millions of missing barrels in previous reports, recognizing that natural gasoline and unfinished oil used in crude blending belong to crude supply