January 22, 2025 07:34 GMT
OIL: Crude Steadies After Decline This Week
OIL
Crude prices are holding within yesterday’s trading range after falling this week as President Trump declared a national energy emergency on his first day in office and threatened a tariff on China as well as on Mexico and Canada.
- The prospect of 25% tariffs on imports from Canada starting February 1 is an upside risk to US fuel prices with refineries in the Midwest geared for heavy Canadian crude.
- The day delayed US industry-based inventory data for last week is released today. Crude stocks have been falling since November, but producers and refiners could front load supplies ahead of expected US tariff on imports.
- The new US administration has made the prospect of increased trade protectionism very real, while increasing the possibility of tighter sanctions against Iran and Venezuela. It has also said that if Russia doesn’t negotiate on a peace deal for Ukraine, it will also enhance sanctions against it.
- Cold temps in North Dakota shut-in 130-160-kb/d in oil production per the state’s Pipeline Authority, who also said most of it should be back in 4-7 days. Milder US weather is forecast later this week.
- US diesel cracks lost ground yesterday, reversing some of the recent rally which took the spread to a 10-month high.
- Brent MAR 25 down 0.5% at 78.91$/bbl
- WTI MAR 25 down 0.6% at 75.36$/bbl
- Brent MAR 25-APR 25 down 0.02$/bbl at 0.87$/bbl
- Brent JUN 25-DEC 25 down 0.18$/bbl at 2.98$/bbl
- US gasoline crack down 0.3$/bbl at 12.8$/bbl
- US ULSD crack down 0.2$/bbl at 28.42$/bbl
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