- West Texas Intermediate traded above $81/Bbl Tuesday morning as the possibility of government action, and a rising dollar has arrested further price increases
- Headlines are still centered around whether Biden will tap the country’s Strategic Petroleum Reserve
- OPEC said the global oil market would switch from being under- to over-supplied as early as next month as the economic rebound falters (BBG)
- Oil production in the Permian Basin is expected to hit a record in December, according to a U.S. government report Monday
- Output from West Texas and New Mexico are set to increase to 4.95 MMBbl/d next month, surpassing the record set in March 2020
- The Paris-based International Energy Agency (IEA) says the end of the oil price rally is in sight as production recovers
- In its monthly report, the IEA left oil demand growth estimates little changed for 2021 and 2022
- Demand growth remains robust, but supply is catching up, and changes in oil stockpiles seen in October suggest “the tide might be turning,” according to the IEA’s report
- “Production in the U.S. is ramping up in tandem with stronger oil prices.”
- The IEA boosted forecasts for U.S. production in the fourth quarter by 300 MBbl/d and for next year by 200 MBbl/d. U.S. output will climb by 1.1 MMBbl/d in 2022