03 December 2020 by jbchevrel
Zoom on the top left of the chart. Energy-linked CDS were mixed today. the focus for crude prices was on the OPEC+ meeting. OPEC+ was discussing the possibility of starting to raise its collective oil production from January. They continue debate on the future of the oil production cut deal after it failed to reach an agreement on Tuesday. According to Reuters, most observers were unanimous that OPEC+ will continue with the current rate of cuts (so 7.7 million bpd) which were originally supposed to be in effect until the end of this year, to be followed by a relaxation of 2 million bpd beginning in January 2021. Vedomosti had reported yesterday that Moscow would rather boost production from January by a modest 500k bpd, and Vedomosti reported that Russia’s position was shared by the UAE. It was confirmed later that starting in January, the 7.7 million bpd cuts will be eased by 500k. Following that the ministers will hold meetings and see if another 500k could be added until 2 million bpd is reached. It didn’t have a big negative impact, actually crude price keep on bullish uptrend, WTI nearing $46/b. Occidental CDS closed at 15%. Murphy Oil CDS closed at 13.5%. Apache CDS closed at 10%.