Oil Crashes After OPEC+ To Proceed With Planned 400Kb/d Output Hike

Oil Crashes After OPEC+ To Proceed With Planned 400Kb/d Output Hike

An earlier trial balloon of a smaller 200k b/d production hike was been popped as Russia moves with a formal proposal for OPEC+ to lift oil output by 400,000 b/d for January, sending oil markets crashing.

Energy Intel’s Deputy Bureau Chief & Chief Opec Correspondent Amena Bakr confirms that “All ministers appear to be in agreement with an increment of 400k for Jan (i.e. a rollover of the current policy)” according to sources.

There will be also an extension of the compensation cuts- sources #OOTT #opec

— Amena Bakr (@Amena__Bakr) December 2, 2021

This is what was planned by OPEC+ but not what the market was ‘hoping’ for.

WTI plunged further on the headlines, tumbling to a $62 handle…

,,,and near 4-month-lows…

At about $66 a barrel, Brent is now down more than 20% from its October 25 peak of $86.70 barrel.

As a reminder, OPEC producers boosted output by 350,000 barrels a day in November, with the 10 countries bound by the output deal adding almost all those barrels. That’s bigger than the 254,000 barrel a day increase in their combined target, but still leaves them pumping less than they are permitted under the deal.

The new quotas are as follows…

Source: Amena Bakr

So, Biden gets his lower oil prices.. and lower gas prices… thanks to Russia!?

Thanks Vlad!

Tyler Durden
Thu, 12/02/2021 – 09:06

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