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Gulf Arab Oil Producers Resume Crude Exports at Pre-War Rates
Gulf Arab oil producers resume crude exports at pre-war rates, as Brent and WTI fall over 4% in early trade.
Key points
- Brent and WTI both fell over 4% in early trade as negotiators renewed diplomatic efforts with Iran.
- Goldman Sachs raised its December forecast to $105 per barrel for Brent and $94 per barrel for WTI.
- Goldman cited high disruption risk and is pricing in a 1mb/d global supply disruption allowance through 2027.
Why it matters. Goldman Sachs cites high disruption risk in its raised oil price forecast, and a draft proposal on Iran tensions is being circulated, which may shape crude markets.
Brent and WTI crude both fell more than 4% in early trade as negotiators renewed diplomatic efforts to ease tensions with Iran. According to Reuters, a draft proposal is being circulated after another round of talks in Doha on Sunday. Goldman Sachs raised its December oil price forecast to $105 per barrel for Brent and $94 per barrel for WTI, citing 'high disruption risk'. S&P Global's Dan Yergin said, 'We are not going to return to a past normal,' and called the war in Iran an 'open-hinge' moment in history.
Latest updates
Gulf Arab Oil Producers Resume Crude Exports at Pre-War Rates
Gulf Arab oil producers are exporting crude again at rates seen before the war, according to CNBC's Morning Squawk newsletter. Oil prices remain at the center of market attention. Futures were higher as markets looked ahead to November after a difficult October. The coming week includes more earnings from the Magnificent Seven technology companies, the US midterm elections, and a payrolls report due Friday. Traders will be watching whether the export recovery keeps prices stable.