- WTI is down 7c to $40.81/Bbl, and Brent is down 9c to $42.84/Bbl
- OPEC+ is planning to hold a virtual meeting today to discuss the current oil market outlook given the resurgence of COVID cases across the globe (Bloomberg)
- Despite the conference, no formal supply decisions are expected to be made until December 1, 2020
- The International Energy Agency estimates that global oil demand has recovered to 94% of pre-pandemic levels, but certain refined products demand could take several years
- The month one vs month two Brent contract spread is at its highest level since late August
- The spread, which is currently printing at -$0.34, is used as an indicator for the strength of the physical crude market
- The spread has tightened up some ~$0.20 since the start of October
- The CFTC reported that managed money long positions fell 16,812 contracts to total 379,184 contracts
- Managed money short positions fell 7,750 contracts to total 85,355 contracts
- Net positioning now stands at a one-month low of +293,829 contracts