OIL: Mid-Day Oil Summary: Oil Rangebound

Crude is largely rangebound on the day, holding most of yesterday’s gains. Support comes from the risk of additional sanctions on Russia and Iran

• Brent FEB 25 down 0% at 73.51$/bbl
• WTI JAN 25 up 0.1% at 70.37$/bbl
• The OPEC+ delay has materially reduced supply, but the market is still expected to be oversupplied by 1.4mb/d if barrels are returned from April as planned, according to the IEA monthly oil report.
• The IEA lowered 2024 demand growth to 840kb/d but raised the 2025 oil demand growth forecast to 1.1mb/d from 990kb/d projected last month.
• The US considers further restrictions on Russian oil and Trump’s pick for national security advisor suggests maximum pressure on Iran while the EU targets additional sanctions at Russia’s shadow tanker fleet.
• The WTI discount to Brent is the narrowest since Sept. 30 after EIA data yesterday showed Cushing stocks falling below the seasonal five-year range lows.
• OPEC lowered its annual demand growth to 1.61m b/d for 2024, down 210k b/d compared to last month’s assessment amid slowing China demand.
• Black Sea CPC Blend November loadings increased 11% m/m to 4.965m metric tons (1.31mbpd) in November from 4.632m tons in October, according to Reuters.
• Mexico’s Pemex offshore oil platforms halted operations on Wednesday and all crude-exporting terminals halted operations due to bad weather, according to a statement cited by Bloomberg.
• Saudi Arabia’s’ crude flows to China are set to rebound to the highest since October at about 46 million barrels in January according to Reuters sources.