Oil End of Day Summary: Crude Falls Amid Volatility

Crude has fallen during the day, amid indications of building supply from a boost in US exports coupled with weak demand. A stronger US dollar has added additional pressure. Remarks from Russian officials that OPEC+ was prepared to deepen cuts in Q1 have been unable to stop the losses.

• WTI JAN 24 down -0.9% at 72.38$/bbl
• Key oil market gauges currently indicate that supply is outstripping demand, despite Saudi Arabia’s pledge that OPEC+ will deliver its output cuts, according to Bloomberg.
• US crude oil stocks likely fell for the first time in seven weeks, according to a survey by the WSJ.
• Exports of US crude are approaching a new record of near 6m b/d, putting pressure on European prices, according to Bloomberg.
• Canadian oil producers are preparing for further delays to the Trans Mountain Pipeline expansion (TMX), weighing on crude prices, according to Reuters.
• Iraq’s crude production in November was on averaged 127k b/d below its OPEC+ target, according to ArgusMedia.
• Saudi Arabia cut its flagship Arab Light OSP for January to Asian customers by 0.50ct/bbl to 3.50$/bbl over the Oman/Dubai average, according to a price list seen by Bloomberg, marking the first cut in seven months.
• Russian President Vladimir Putin will travel to the United Arab Emirates and Saudi Arabia on Wednesday, according to Yuri Ushakov, a Kremlin adviser on foreign affairs, cited by Bloomberg.
• The Caspian CPC crude loading program for December has been altered after loadings were halted due to storms for almost a week according to Bloomberg.
• Chinese refiners are rejecting offers of Venezuelan oil as the price discount falls due to the easing of US sanctions while shipments to India are increasing according to Bloomberg.