Crude Recoups Some Losses

Crude Prices have edged down, although have recovered much of their losses since the intraday low of $85.68/b, as the market continues to monitor the ongoing situation in the Middle East.

• WTI NOV 23 down -0.4% at 86.32$/bbl
• WTI-Brent up 0.06$/bbl at -4.4$/bbl
• WTI NOV 23-DEC 23 down -0.11$/bbl at 1.29$/bbl
• WTI DEC 23-DEC 24 down -0.16$/bbl at 7.66$/bbl
• President Biden will travel to Israel on Wednesday to show solidarity and work to prevent the war escalating into a broader conflict.
• Any involvement by Iran, either leading to further sanctions or retaliatory blocks on flows via the Strait of Hormuz, could see a further squeeze on supply in an already tight market.
• Venezuela will resume talks with US officials today in Barbados in a move that will potentially ease sanctions on its oil. Both governments agreed to a deal to ease US sanctions on Venezuela oil in exchange for competitive and international monitored presidential elections next year. This could add some downside pressure to the market in the longer term if additional barrels were freed up. However, due to a lack of infrastructure, lifting sanctions alone would not lead to a significant jump in global supply.