- Oil is trading lower, around $77.45, after posting a $1.71 rally yesterday
- The Cal ’24 strip is trading at $76.16, and the Cal ’25 strip is at $72.07
- Iran sees higher oil production in 2024-2025 (BBG)
- The country’s oil minister said that Iran’s production will rise to 3.6 MMBbl/d by March 2024 and 4 MMBbl/d by 2025
- Current production levels in Iran are around 3.4 MMBbl/d
- Due to US sanctions, the vast majority of Iranian exports have been shipped to China
- RBC sees the possibility of deeper OPEC cuts (BBG)
- The bank said recently that they see some scope for a deeper supply reduction by OPEC in order to preserve a floor for oil prices
- According to the bank’s note, if the cartel seeks deeper cuts, Saudi Arabia may push individual producers to reduce output so that the member countries share the burden
- RBC also sees continued risk from the Israel-Hamas conflict despite the erosion of the risk premium in recent weeks
- Russian seaborne crude exports fall to a three-month low (BBG)
- 2.7 MMBbl/d of Russian oil was exported last week, the lowest level since August and following a surge in exports in October
- Almost all Russian exports have been delivered to China or India this year
- Russian refinery throughput has jumped recently as the country’s refineries return from seasonal maintenance
