Despite the devastation caused by Hurricane Ian, oil markets have been relatively unaffected by hurricane season this year. According to OPEC+ sources, members of the oil group have started talks about potential oil production cuts in November 2022, OilPrice said.
It is not unusual to see oil prices spike in late September as hurricanes ravage the US Gulf of Mexico, yet, despite the horrendous damage done to Florida and other south-eastern states, Hurricane Ian has failed to become a notable factor for crude. And whilst some pricing upside came from US stock draws, a new batch of Iranian sanctions, and marginal weakening of the US dollar, the next big catalyst for oil prices will be the OPEC+ meeting taking place on October 5th. With production cuts being discussed as a means of maintaining palatable prices, an upward run towards $100 per barrel might be on the cards for ICE Brent.
US slaps further sanctions on Iran oil trade. The Biden Administration targeted 6 companies in India, Hong Kong, China, and the UAE for allegedly enabling the sale of Iranian crude and products into South and East Asia, as most Iranian exports still sail towards Chinese buyers.
China hints at product export flexibility. As the Asian markets are widely expecting the release of this year’s fifth batch of Chinese fuel export quotas of up to 15 million tons, sources indicate Beijing might be open to extending the export allowance into 2023 to boost domestic demand.
Europe’s industry shut-ins now move to lead.Commodity giant Glencoreis considering shutting its lead operations at its Portovesme plant in Italy after high electricity prices made production commercially unsustainable, potentially seeking to develop an EV battery recycling plant there.