*Oil in Reverse as Rise in U.S. Crude Stocks Fans Oversupply Fears*
Oil gave up Tuesday’s gains as oversupply hangs over the market given the data from the API that was released showed a 4.6 million barrel crude build, on top of weakening demand from Europe and the US due to rising cases of the virus with France, Russia and the US posting record daily virus counts. As of midday GMT, lows in Brent hit $39.50, down nearly 4%. (Reuters)
*Demand Issues to Overshadow OPEC+ Supply Next Year*
OPEC are looking to address the demand issues before raising supply in January 2021 as the oil market seems to be stuck at a stalemate between supply gluts and weak demand. Refiners are cutting capacity by 50%-60% or completely as refining margins tumbles because of falling product demand, with the head of Saudi Aramco’s trading arm saying that business is unsustainable at these current rates. (Reuters)
*Oil, Gas to Play Key Role for Decades Despite Energy Transition*
Petronas are due to continue to pursue oil and gas projects over the next few years, however with more cost-effective and cleaner processes, with the fuels looking likely to have a pivotal role in the transition to cleaner energy, with oil and gas constituting half of the energy basket. (S&P Global Platts)