- Brent crude rallied above $86/Bbl as Saudi Arabia urged caution in boosting supply (Bloomberg)
- The Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg TV on the weekend that producers shouldn’t take the rise in prices for granted
- WTI’s Dec-Dec spread widened to $12 on Monday, while Brent’s edged closer to $10, both the strongest since 2013
- WTI’s discount to Brent moved to the smallest since July at less than $2 on Monday
- “WTI is dragging Brent higher,” said Warren Patterson, head of commodities strategy at ING Groep NV. “There are clear concerns over Cushing inventory levels, which is well reflected in the WTI prompt spread.”
- World oil demand will hit 100 MMBbl/d shortly (Goldman Sachs)
- Gas-to-oil switching may contribute at least 1 MMBbl/d to oil consumption, with gas forwards incentivizing that through winter, according to the bank
- Goldman also noted that oil prices are not high enough to generate demand destruction given falling energy intensity in developed markets and rising income levels in emerging markets