- WTI is up 24c to $41.98/Bbl, and Brent is up 34c to $44.54/Bbl
- Oil prices are forecasted to make their third weekly gain in a row for the first time since August
- The month one versus month two Brent spread has narrowed to $-0.16/Bbl; this is the tightest it has been since July, potentially signaling that concerns of over supply are easing
- The narrowing of the Brent spreads could be a result of vaccine optimism, the expectation that OPEC delays production boosts, and resilient Chinese crude demand
- Saudi Arabia and Russia are in a tight race to become China's top oil supplier in 2020 as both countries boost exports to the country, despite a resurgence in coronavirus (Reuters)
- Both Saudi Arabia and Russia export approximately 1.7 MMBbls/d of oil to China; however, Saudi Arabia is expected to increase its exports to the country to ~2.2 MMBbls/d