- WTI traded below $70/Bbl Wednesday morning, the third day of declines, as global markets shift into a supply surplus and Omicron uncertainty remains (Bloomberg)
- There is a growing consensus that the inventories are on the rise and will accumulate more rapidly next year amid curbs on travel. A view the IEA stated on Tuesday
- Oil’s curve structure recently flirted with contango for the prompt month spread, a sign that signals oversupply
- The world’s largest independent oil trader Vitol warns that crude prices will rise in 2022, with the market remaining volatile due to a lack of investment in new production
- “It’s going to be up there at the top of the range, “ said Chris Blake, managing director at Vitol
- Over the longer term, the world “will feel the impact” of insufficient spending on new upstream projects over the last few years and “in sustaining oil production,” he said (BBG)
- Saudi Arabia’s energy minister Abdulaziz bin Salman said earlier in the week that the world is heading “toward a phase that could be dangerous” if spending on new oil and gas production doesn’t ramp up