Oil prices swung between gains and losses on Thursday, December 2, but moved steadily higher during the evening session. By the close, Brent surged 2.3%, crossing back above the psychologically important $70/bbl level, while WTI advanced 2.6% to $67.03/bbl.
OPEC+ yesterday decided to stick to its existing policy that calls for a 400 kbpd oil output increase in December, and to revise this plan in January if supply significantly outstrips demand. We believe that this decision was due to the fact that oil supply is currently still lagging behind demand, while the spread of the Omicron Covid variant has not yet greatly reduced demand.
Crude futures are trading sharply higher this morning, with Brent up 2.93% at $71.67, and WTI trading 2.99% higher at $68.49 by the time of writing. Our Brent price forecast for today is the range of $70-72/bbl.