The Brent futures contract has strengthened this morning over continued supply disruptions in the Red Sea, trading above the $80/bbl mark again and priced at $80.05/bbl at 06:30am GMT (time of writing). The WTI front contract also gained momentum at the start of the day with prices reaching $74.43/bbl at 06:30am GMT.
The market seems to dismiss the importance Angola’s exit from OPEC as the country represented a small portion of the overall output, at about 1.1mbpd, compared to the 28mbpd produced by the group. Additionally, with Brazil joining OPEC+ in 2024, the organisation will grow as the Southern American counterpart plans on producing 3mbpd.
The American picture is looking less bleak today as the GDP growth was at an annual rate of 4.9% in Q3, against expectations of 5.2%. Although softer than expectations, it still points to a relatively high growth compared to some countries struggling to restart their economies and signals hopes for a softer landing. Another announcement to look out for later today, is the PCE price index, used for gauging inflation in the US – an important measure that will guide the next Fed’s meeting in 2024.
The front and 6-month Brent futures spreads are at $0.35/bbl and $1.19/bbl respectively.
