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

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by Tyler Durden
Thursday, Dec 02, 2021 - 02:06 PM

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.

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!