Oil Market Update: Debunking the Bearish Narrative
Bears miss key points and misunderstand the rise in exports in September. (with 7 charts and two tables)
The OPEC+ group (V8) met on Sunday for nine minutes and decided to increase the production ceiling by 137 kb/d in November, following last month’s decision to begin unwinding the 1.65 mb/d voluntary cuts by raising the production ceiling by 137 kb/d in October.
OPEC clarified at the end of last week that media reports of discussions to increase output by 500 kb/d were false. The media’s “manufactured bearishness” backfired, as the actual increase was only 137,000 b/d. Oil prices rose 1.5% in Asian markets on Monday morning. Reuters published three incorrect reports, claiming discussions and disagreements that were debunked by the facts. When the official meeting ended, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, asked Russian Deputy Prime Minister Alexander Novak if consultations beyond November’s policy or the 137,000 b/d volume occurred. Novak confirmed no such talks took place, exposing Reuters’ fabricated narrative.