OIL: Oil End of Day Summary: Crude Extends Losses

Crude has extended losses today after Trump and Putin appeared to agree to begin talks over the Ukraine war, a bearish move for oil markets. This added to existing pressure from an above-expectation US stock build.

• WTI MAR 25 down 2.7% at 71.35$/bbl
• Trump: "We have also agreed to have our respective teams start negotiations immediately, and we will begin by calling President Zelenskyy, of Ukraine, to inform him of the conversation, something which I will be doing right now."
• EIA Weekly US Petroleum Summary - w/w change week ending Feb 07: Crude stocks +4,070 vs Exp +2,516, Crude production +16, SPR stocks +249, Cushing stocks +872
• North Dakota Oil Production: is down around 40-70 MBOPD due to the recent extreme cold and related operations challenges.
• Israeli Prime Minister Benjamin Netanyahu has warned of a "return to intense fighting" if Hamas does not return Israeli hostages by Saturday.
• Magda Chambriard, CEO of Brazil’s Petrobras says the firm can withstand lower oil prices following US President Trump's vow to boost production for cheaper crude.
• Russia’s seaborne crude shipments fall suggesting further signs of disruption after the latest US sanctions announced on Jan. 10, although also impacted by weather, according to Bloomberg vessel tracking.
• Global crude stocks have fallen to the lowest level since at least January 2017 at 3,240mbbls in early February, according to Kpler.
• Floating Russian and Iranian barrels have hit multi-month highs on harsher U.S. sanctions as buyers fear pulling in cargoes.
• Middle Eastern producers may be unable to help meet Indian crude demand in coming months if US sanctions on Russia impact supply to India, Platts reports.
• India and Russia are working to reconfigure supply infrastructure to keep on buying Russian oil, executives told Bloomberg.
• MNI COMMODITY WEEKLY: https://enews.marketnews.com/ct/x/pjJsdgDexu4I6a1hIUt0Tw~k1zZ8KXr-kA8x67HDMemptIPjO1OcQ