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OIL: Crude Extends Pull Back from Jan. 15 High

OIL

Crude front month futures extend the trend lower in place since Jan. 15 as President Trump kept up his pressure on OPEC+ calling for them to ‘cut the price of oil,’ to halt the Ukraine war.

  • OPEC+ has yet to react to a call from the US President Donald Trump to lower oil prices, with delegates pointing to the plan already in place to raise production from April, Reuters reported. The JMMC next meet on Feb. 3.
  • Concern for China demand growth continues to limit upside price pressure after factory activity fell in January after three months of expansion.
  • Despite the fall in futures, the prompt Brent time spread has rallied on tight supply concern driven by US sanctions and the current OPEC+ cuts through Q1.
  • Goldman Sachs said a big drop in Russian production is not expected due to sanctions as higher freight rates incentivize non-sanctioned ships to move Russian oil and with a deepening discount on ESPO crude.
  • Russia's Defence Ministry reported Ukraine drones again attacked Russia's Ryazan oil refinery last night and authorities were still estimating the damage on Sunday.
    • Brent MAR 25 down 0.4% at 78.15$/bbl
    • WTI MAR 25 down 0.5% at 74.25$/bbl
    • Brent MAR 25-APR 25 up 0.09$/bbl at 1.04$/bbl
    • Brent JUN 25-DEC 25 down 0.01$/bbl at 2.81$/bbl
    • US gasoline crack up 0$/bbl at 12.68$/bbl
    • US ULSD crack down 1.2$/bbl at 26.75$/bbl
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Crude front month futures extend the trend lower in place since Jan. 15 as President Trump kept up his pressure on OPEC+ calling for them to ‘cut the price of oil,’ to halt the Ukraine war.

  • OPEC+ has yet to react to a call from the US President Donald Trump to lower oil prices, with delegates pointing to the plan already in place to raise production from April, Reuters reported. The JMMC next meet on Feb. 3.
  • Concern for China demand growth continues to limit upside price pressure after factory activity fell in January after three months of expansion.
  • Despite the fall in futures, the prompt Brent time spread has rallied on tight supply concern driven by US sanctions and the current OPEC+ cuts through Q1.
  • Goldman Sachs said a big drop in Russian production is not expected due to sanctions as higher freight rates incentivize non-sanctioned ships to move Russian oil and with a deepening discount on ESPO crude.
  • Russia's Defence Ministry reported Ukraine drones again attacked Russia's Ryazan oil refinery last night and authorities were still estimating the damage on Sunday.
    • Brent MAR 25 down 0.4% at 78.15$/bbl
    • WTI MAR 25 down 0.5% at 74.25$/bbl
    • Brent MAR 25-APR 25 up 0.09$/bbl at 1.04$/bbl
    • Brent JUN 25-DEC 25 down 0.01$/bbl at 2.81$/bbl
    • US gasoline crack up 0$/bbl at 12.68$/bbl
    • US ULSD crack down 1.2$/bbl at 26.75$/bbl