Market Analytics and Considerations – Crude Oil
Key Notes
According to Alexander Novak, the deputy prime minister of Russia, “Russia could slash production of oil between 5-7% in beginning 2023 as it reacts to western price limitations.”
According to TASS, Russia may reduce its oil production by 500,000–700,000 barrels per day.
According to Reuters, due to a sharp decline in shipments to Europe, Russia’s natural gas output may drop by up to a fifth this year to 671 billion cubic meters, as reported by the Interfax news agency.
Additionally, according to Novak, who was quoted by Intefax as saying on state television, Russia’s oil production is expected to increase by 2% this year to 535 million tons
The WTI prices for crude rose earlier in the day after Reuters revealed hopes of a reduction in Russian oil deliveries to the Baltic region. The news reported that “according to traders and Reuters computation, Russia’s Baltic oil exports might decline by 20% in December from the preceding period after the European Union and G7 nations implemented restrictions and a price ceiling on Russian crude from Dec. 5.
The risk-enhancing news out of China and the US Dollar’s decline before to the important data may also be supporting the WTI crude oil bounce.
WTI rebounds WTI crude oil reversed from a 3 high the preceding day and posts modest gains around $78.30.
