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[Quick Facts]

1. Saudi Arabia's request for OPEC+ members to increase production cuts meets with resistance.

2. The temporary Israel-Hamas truce has been extended by two days.

3. BofA expects a weaker U.S. dollar but a stronger Australian dollar in 2024.

4. Russia's oil processing volume has reached its highest since August.

[News Details]

Saudi Arabia's request for OPEC+ members to increase production cuts meets with resistance

Saudi Arabia is reportedly asking other OPEC+ members to cut their crude output quotas to shore up the global market, but some members are resisting the request. The delegates said that Saudi Arabia has been unilaterally cutting oil supply by 1 million barrels per day (bpd) since July and is now seeking further support from its OPEC+ partners.

The Saudi proposal came in the tough negotiations among the oil-producing countries of the bloc. Angola and Nigeria resisted cutting their 2024 quotas, so OPEC+ had to postpone a policy meeting by four days to Nov. 30. Before the weekend, these oil producers were moving toward a compromise, but no agreement had yet been reached, delegates said. Some speculated that internal conflict could even lead to several members quitting OPEC.

The temporary Israel-Hamas truce has been extended by two days

Majed al-Ansari, spokesperson for the Foreign Ministry of Qatar, announced on Nov. 27 that Hamas and Israel agreed to extend a previously reached temporary truce by two days, following tense negotiations between the two sides over the further release of hostages held by Hamas in Gaza. Al Jazeera quoted Hamas saying that the temporary truce in the Gaza Strip has been confirmed to be extended for two days, with the same conditions as before. Ten Israeli detainees will be released each day for the next two days, totaling 20 people.

BofA expects a weaker U.S. dollar but a stronger Australian dollar in 2024

The dollar is expected to weaken in 2024 while the Australian dollar is expected to rally as the Federal Reserve cuts interest rates, according to strategists such as Athanasios Vamvakidis at Bank of America (BofA). The FOMC is expected to cut rates in 2024 as the Fed's concerns shift from inflation to economic growth, and other major central banks are likely to start cutting rates as well.

Russia's oil processing volume has reached its highest since August

Russian refineries are processing large volumes of crude oil as the seasonal maintenance has ended and the government eases restrictions on fuel exports. Russia processed 5.65 million barrels of oil a day between Nov. 16 and 22, 100,000 bpd more than the previous week, climbing to the highest level since mid-August, according to a person familiar with the matter. Russia's refining capacity stood at 5.55 million bpd in the first 22 days of November, up about 236,000 bpd from most of October, according to Bloomberg calculations based on historical data.

However, Russia's seaborne oil exports fell to the lowest level since August in the week ended Nov. 19, despite an uptick in domestic processing, tanker-tracking data monitored by Bloomberg show. Shipments decreased by 580,000 bpd from the previous week, the biggest week-on-week drop in more than four months.

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