With consumption in Asia remaining robust, more immediate spreads have reached their point strongest since July. The prospect of a vaccine and producer hedging has caused a significant flattening of the curve for the second half of next year, another sign of expected strength. WTI is $42.00; Brent is $44.52
Oil is still up 2.7% this week amid vaccine developments and a demand rebound in Asia, with China seeing the first draw of its implied crude inventory in three years and Russian crude trading almost $3 higher than the Dubai benchmark. However, a resurgent coronavirus in the U.S. and Europe is sapping fuel consumption there and weighing on the broader global recovery. WTI is $41.52; Brent is $44.20
Oil rallied above $42 a barrel on Monday after news of another Covid-19 vaccine breakthrough but lost some ground as the market grapples with an uneven demand recovery. A resurgent virus in Europe and the U.S. is sapping fuel consumption, compared with Asia where China’s rebound is accelerating and refiners are buying more crude. WTI is $42.17; Brent is $ 44.74
A delay to the planned OPEC+ output hike would help to offset the increase in supply coming from Libya, which has climbed above 1 million barrels a day. OPEC+ is trying to balance US & European COVID concerns against resurgent Asian demand and delay an output hike of almost 2 million barrels a day in January. WTI is $40.87; Brent is $43.36
Though the full impact of a vaccine on crude demand is still a way off, China’s oil processing rebounded in October to match a record, as consumption in Asia continues to vastly outpace that of regions still afflicted with the virus. Oil capped its biggest weekly advance since early October on Friday after news of Pfizer’s Covid-19 vaccine breakthrough. WTI is $41.67; Brent is $44.27
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