ICE Brent and NYMEX WTI continued their upward rally in the early trading session today amid persistent risks to Russian Oil supplies and a moderate output hike by OPEC+, ING's commodity experts Ewa Manthey and Warren Patterson note.

Pemium Arab Light crude into Asia has been left unchanged

"Meanwhile, the Brent prompt timespread strengthened slightly and traded in a backwardation of $0.42/bbl this morning, compared to $0.37/bbl at the end of last week. The Saudis released their latest official selling prices (OSPs) for November loadings. It shows that the premium for their flagship Arab Light crude into Asia was left unchanged at US$2.20/bbl over the benchmark."

"The decision comes after OPEC+ agreed to increase Oil production by 137k b/d in November, and it also contrasts with the average market expectations of an increase of US$0.30/bbl. OSPs for all grades into the US and Europe were reduced by US$0.50/bbl and US$1.20/bbl respectively, reflecting expectations of slower demand."