- WTI is up $1.29 to $38.10/Bbl, and Brent is up $1.121 to $40.18/Bbl
- Oil futures picked up where they left off during yesterday's session, trading nearly 3% higher this morning
- OPEC+ has mulled extending its output curtailments amid rising Coronavirus cases, Libyan output
- Russia's energy minister called for a meeting among the countries oil firms to discuss the OPEC+ agreement
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- OPEC+ and its member countries are scheduled to ease production cuts in January, returning nearly 2 MMBbl/d of output to the market
- The renewed pressure on oil demand is likely to stymie the cartel's plans of increasing output, as Libya, who is exempt from the cuts, is expected to reach 1.3 MMBbl/d by the end of the year. Additionally, rising Coronavirus cases in the U.S. and Europe have added to concerns about the markets ability to absorb the crude
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- Top executives at global trading firms, Trafigura and Vitol, said the rising coronavirus cases in the U.S. and Europe could destroy up to 2.5 MMBbl/d of oil demand
- Supply tightness has helped prop up the crude markets. Output cuts globally have accounted for nearly 6-7 MMBbl/d of production, which is more than covering the demand drop, according to Vitol
- Weir (Trafigura's Chief Executive) said, "We're possibly talking another 1MMBbl/d in the U.S., probably 1.5 MMBbl/d in Europe. It's not looking good for the foreseeable future"
- Marathon Petroleum, the largest U.S. independent refiner by capacity, says more U.S. refining capacity must be brought off-line to bring fuel production in line with immediate and future demand
- Marathon ruled out an exit from any of its Gulf Coast refining assets but said that a review of all facilities continues
- The company has already chosen to shut its 27 MBbl/d Gallup, New Mexico refinery, and plans to convert its 166 MBbl/d Martinez, California refinery to renewable diesel production