Lacking Clear Direction In Asia

WTI is -$0.40, while Brent is +$0.10 at typing. The benchmarks have traded either side of unchanged during Asia-Pac dealing.

• Crude markets were subjected to conflicting signals during Asia hours, with weight from lower U.S. e-mini equity futures at least partially offset by the familiar stories of tightness in crude supply, cold weather snaps and questions re: the ability of some OPEC+ members to raise production to meet their new quotas.
• In oil-specific news, the weekend saw Saudi Aramco raise its March prices for customers in Asia, the U.S., and Europe by $0.30-$2.30 per barrel (within wider expectations).
• Elsewhere, Libyan state operators disclosed a 100K bpd reduction in oil production on Friday (Platts estimated Libyan oil production of 1.11mn bpd in 2021) due to reduced storage capacity surrounding damaged oil tanks.
• WTI futures remain in backwardation with front month futures trading at a ~$1.60 premium to the second contract at writing, with that dynamic aided by supply uncertainty and familiar geopolitical risks e.g. Ukraine/Russia matters and Middle Eastern tensions.