- Oil is trading higher ahead of tomorrow’s OPEC meeting
- The API estimates an inventory draw of 0.8 MMBbls in the US and a 0.5 MMBbl draw from Cushing
- OPEC continues talks with no meeting delay expected (Reuters)
- After delaying the meeting from Sunday to Thursday, November 30, OPEC is continuing to hold discussions about their 2024 oil policy and is not currently expected to delay any further
- The meeting was delayed due to disagreements over production quotas for African producers, while the UAE is being allowed to increase output in 2024
- The meeting will determine the future of OPEC’s supply cuts into 2024
- Saudi Aramco expected to cut oil price to Asia (BBG)
- Saudi Aramco is forecast to reduce the official selling price of Arab Light by $1.05/Bbl in January, as cheaper US and European crude has driven up competition in Asia
- Oil from outside the Middle East has been more attractive to Asian buyers, as WTI is about $5/Bbl lower than Arab Light
- There has also been an increase in supply from the North Sea and Guyana, which shows Saudi Arabia’s supply reduction strategy could lead to the risk of the country losing market share