MNI: GERMANY FINAL DEC HICP 2.8% Y/Y, 0.7% M/M

MNI: UK NOV GDP 0.1% M/M, 0.0% 3M/3M, 1.0% 3M Y/Y

MNI BRIEF: China Shipbuilding Up 13.8% In 2024

MNI: PBOC Net Injects CNY336.4 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1881 Thurs; -2.18% Y/Y

MNI BRIEF: Economic Activity Picks Up A Bit - Fed Beige Book

MNI: GERMAN DEC CPI +2.2 % Y/Y

MNI: UK NOV TRADE BALANCE GBP -4.76BN

MNI: UK NOV CONSTRUCTION OUTPUT +0.4% MM, +0.2% 3M3M, +0.2% YY

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: After Yesterday’s Surge, Oil Calm with Eyes on Middle East. 

OIL
BulletEnergy BulletsCommodities
  • The US has upped the ante on Russia with the most aggressive use of sanctions as outgoing President Biden looks to leave a mark on the outlook for Ukraine.
  • The US has targeted known Russian firms that handle more than 20% of Russian exports as well as insurers and market traders in a bid to halt Russian oil deliveries to key ports.
  • The Biden administration is seeking to disrupt the Russian oil supply chain with key buyers like India suggesting that they may no longer buy Russian shipments.
  • Whilst the sanctions may take some time to be fully in place, there is clear evidence that shipments are idling at sea as ports in China as port owners are now wary of taking Russian deliveries.
  • The International Energy Agency has revised down its forecast for the surplus of oil to 725,000 from 950,000 citing new sanctions from the US, in its monthly report.  
  • This decline in expected output could result in more supply coming on line by those providers currently on hold as prices have halted their increase.
  • Crude inventories have been falling and are down now for eight consecutive weeks.
  • Oil prices surged yesterday having spent the early part of the trading day doing very little, WTI hit a low of US$77.24 before surging to $80.77 before closing at $80.04.
  • On a low volume trading day a late morning surge in prices quickly evaporated to see WTI at $80.30 into the close.
  • Brent followed a similar pattern, hitting a low of US$79.62 before closing at $82.03.
  • Brent too had a mid morning surge up to $82.57, before backing off into the Asia afternoon to be at a $82.25
  • The day ahead will see markets continue to digest the news and impact of the Russian sanctions as well as news of a ceasefire in the Gaza conflict and its potential ramifications for Middle East tensions. 
311 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The US has upped the ante on Russia with the most aggressive use of sanctions as outgoing President Biden looks to leave a mark on the outlook for Ukraine.
  • The US has targeted known Russian firms that handle more than 20% of Russian exports as well as insurers and market traders in a bid to halt Russian oil deliveries to key ports.
  • The Biden administration is seeking to disrupt the Russian oil supply chain with key buyers like India suggesting that they may no longer buy Russian shipments.
  • Whilst the sanctions may take some time to be fully in place, there is clear evidence that shipments are idling at sea as ports in China as port owners are now wary of taking Russian deliveries.
  • The International Energy Agency has revised down its forecast for the surplus of oil to 725,000 from 950,000 citing new sanctions from the US, in its monthly report.  
  • This decline in expected output could result in more supply coming on line by those providers currently on hold as prices have halted their increase.
  • Crude inventories have been falling and are down now for eight consecutive weeks.
  • Oil prices surged yesterday having spent the early part of the trading day doing very little, WTI hit a low of US$77.24 before surging to $80.77 before closing at $80.04.
  • On a low volume trading day a late morning surge in prices quickly evaporated to see WTI at $80.30 into the close.
  • Brent followed a similar pattern, hitting a low of US$79.62 before closing at $82.03.
  • Brent too had a mid morning surge up to $82.57, before backing off into the Asia afternoon to be at a $82.25
  • The day ahead will see markets continue to digest the news and impact of the Russian sanctions as well as news of a ceasefire in the Gaza conflict and its potential ramifications for Middle East tensions.