Oil End of Day Summary: Crude Climbs

WTI is heading for US close trading higher, supported by continued geopolitical tensions which would hit supply, positive economic date, and fears that Venezuelan barrels will see sanctions resume from April.

• WTI MAR 24 up 1.4% at 77.87$/bbl
• The US government will not renew the sanctions relief on Venezuela unless there is progress on allowing all presidential candidates to compete in this year’s election. according to Matthew Miller, US State Department Spokesperson.
• The number of tankers diverting on longer voyages around the Cape of Good Hope has risen to 100 from the previous week, according to OB.
• The 590kbpd Trans Mountain Pipeline expansion will now be completed in Q2 at the earliest due to complications while pulling a pipe through a tunnel section according to the company.
• Saudi Aramco could maintain the Arab Light official selling price to Asia unchanged in March according to a Bloomberg survey.
• Saudi Arabia’s Energy Ministry has told Saudi Aramco to maintain its maximum crude capacity at 12mbpd not to increase its capacity to 13mbpd by 2027, as previously planned.
• Chevron is sending its cargoes of Kazakh CPC blend, loaded in the Black Sea, to Asia via the Cape of Good Hope, according to Reuters.
• APIKUR has requested US Congressional action to help persuading the Iraqi federal government to resume oil exports from the Kurdistan region.
• Egypt’s Suez Canal plans no reduction in general transit feed to attract more traffic flows, Inchcape Shipping Services said Jan. 30, cited by Platts.