- Oil edges lower as economic outlook concerns counter supply tightness
- November ’23 WTI lost 53c this morning to trade around $89.15/Bbl
- Low-risk appetite across markets with investors pricing in a prolonged period of higher interest rates is weighing on crude prices
- Meanwhile, the U.S. dollar hit a ten-month high on Tuesday as higher bond yields attracted investors toward the greenback making dollar-denominated commodities expensive
- However, supply remains tight as Russia and Saudi Arabia have extended their voluntary 1.3 MMBbl/d production cuts to the end of the year
- Regulator approves Trans Mountain Oil Pipeline route change (Bloomberg)
- Canada regulator approved replacing the 1.3 km tunneled section of the Trans Mountain pipeline with an open trench to cut costs and delays
- The expansion will triple oil pipeline capacity from 0.30 to 0.89 MMBbl/d from Alberta to the Pacific coast
- The project has faced over a decade of delays since first announced and was purchased by the government in 2018 after costs had quadrupled; with the recent route change approval, it is now expected to be completed by early 2024
- Oil could hit $150 without more exploration, Shale executive warns (Bloomberg)
- Continental Resources Chairman Harold Hamm warns oil could reach $150/Bbl without more US government support for drilling and exploration
- Shale executives at the American Energy Security Summit called for the Biden administration to adopt consistent policies allowing more drilling, warning of tight supplies and higher prices
- However, the CEOs noted they don't intend to significantly boost output despite oil nearing $100/Bbl for the first time in over a year