Higher In Asia

WTI is +$2.20 and Brent is $3.30 at writing, printing ~$114.30 and ~$118.90 respectively to build on a three-day streak of gains (~+$17). Both benchmarks have caught a bid in recent sessions as earlier optimism re: ongoing Russia-Ukraine ceasefire talks has moderated (with both sides not moving from their well-documented demands), shifting focus amongst participants to the potential impact of Russian crude supplies being removed from global markets in the coming weeks.

• Looking ahead, participants will be watching for possible EU measures (e.g. embargos or taxes) on Russian energy exports to the bloc this week, although outright sanctions are not expected to be enacted yet amidst strong internal opposition. Further discussions will be held on Thursday, when U.S. President Biden is due to arrive in Brussels.
• Elsewhere, there has been little discernible progress in ongoing U.S.-Iran nuclear talks, with Washington stating that an agreement was neither “imminent” nor “certain”, while also emphasising that the U.S. was prepared to make “difficult decisions” to return Iran’s nuclear programme to limits observed under a nuclear deal.
• Keeping within the region, Saudi Arabia has flagged the possibility of more Houthi attacks on its oil facilities, stating that it “won’t bear any responsibility” for disruptions to global crude supplies. A note that OPEC heavyweights Saudi Arabia and the UAE continue to show no sign of plans to speed up planned output increases, although international pressure on the group to do so continues to build (the UK, Japan, and Germany being the most recent parties to call for production increases).