Crude Eases Back After Surging on Potential Russia Output Cut

Crude has eased back from earlier gains but remains up on the day after prices rallied in response to comments from Russia’s Novak says that Russia plans to cut March output by 500kbpd.

Reports suggest OPEC+ plans no action following the seemingly unilateral cut to production announced by Russia in response to western sanctions.

• Other short term supply distribution had already supported a rally of Brent crude up from below 80$/bbl at the start of this week.
• Higher Saudi Arabia OSP prices to Asia announced earlier this week has also added to the price support with optimism over Asian oil demand.
• WTI has rallied less than Brent with ongoing concern for US oil demand as the US December CPI was revised higher in seasonal adjustment revisions.
  • Brent APR 23 up 1.5% at 85.75$/bbl
  • WTI MAR 23 up 1.3% at 79.06$/bbl
  • WTI-Brent down -0.12$/bbl at -6.48$/bbl
  • Brent APR 23-MAY 23 up 0.02$/bbl at 0.46$/bbl
  • Brent JUN 23-DEC 23 up 0.26$/bbl at 3.21$/bbl
  • Brent DEC 23-DEC 24 up 0.41$/bbl at 5.15$/bbl