Oil commentary - 5 December 2023

Morning all. December. And it wouldn’t be December without a Christmas cracker joke, would it? Let’s start with this absolute belter - What happened to Mark Zuckerberg’s novelty jumper when he had a cage fight with Elon Musk? He was left with nothing but Threads. I mean, come onnnnnn! Sure, you’d have to explain it to your Nan when sat round the festive table, but wow! Oil? Brent is trading this morning at $78.17 up 0.14 and WTI is trading up 0.15 at $73.19. It has been an exceptionally busy time during Q4 - you may have noticed this down to the fact that this commentary has been “experiencing some technical difficulties which has resulted in inconsistent publication days, we apologise for this and are seeking to rectify the situation as soon as possible”. Those who know me will be able to explain the real reason in one word, but this is a professional commentary people! So, I shall be sticking with the legal disclaimer above, thanks very much. Quick recap on what’s happened in oil markets – OPEC were going to meet, didn’t, delayed it, then met, and I think they kind of agreed a cut? A voluntary one, but yeah, nah a cut and the market reacted to this festive treat from OPEC+ in the same way a man thinks he’s doing a nice thing by purchasing a new iron for his wife this Christmas – clangggggg. Moving on from people in the doghouse – demand data has come in recently and it’s all a bit, meh? I mean I want to insert a much more cleverererer adjective than “meh”, but is it just me or has that kind of been the word of the year when has it come to all things markets this year? “How’s your year been Alan?” “Yeah, you know, meh”. Nice. Brent below $80 will have a few people worried that a trip back down to $70 per barrel town isn’t too far round the corner. Inevitably, I imagine another OPEC+ headline or two aren’t too far away either. I’m away for a few days now, but what better way to spend my time than sit on a beach, with perhaps one or two of those little blighters that have caused so many technical difficulties and talk to you about oil markets, huh? Oh, OK then. Stay tuned for later on in December for the annual Twelve Day of Oil Christmas commentary, and of course, a recap of the year that was 2023. Season’s Greetings to all.