Oil End of Day Summary: Crude Falls over Week

Crude markets are down around 7.2% on the week, with further losses today amid pressure from a rising US dollar following strong US payrolls data. Slower global demand growth and rising non-OPEC output continues to weigh against Middle East conflict concerns for supply.

• WTI MAR 24 down -1.9% at 72.43$/bbl
• CBS News sources reported the US has a series of strikes planned in the coming days in response to the drone attack on a Jordanian outpost that killed three US service personnel over the weekend.
• US oil and gas rig count fell by 2 on the week to 619 rigs, according to Baker Hughes, the lowest since Jan. 12 and down 16.7% on the year. Oil Rigs: 499 (=), Gas Rigs: 117 (-2), Miscellaneous: 3 (=)
• OPEC oil production fell by 490kbpd in January to 26.5mbpd, according to a Bloomberg survey but remains above its output target.
• Western Canadian Select’s discount to WTI narrowed following the restart of BP’s Whiting refinery, according to Bloomberg, citing sources and General Index prices.
• The excess of supertankers in the Middle East compared with crude cargoes for the coming 30 days expanded to 30% Feb.2, according to Bloomberg citing market sources.
• Exxon and Chevron plan to ramp-up production from the Permian basin in 2024, an early indicator that US output may once again exceed expectations, according to Bloomberg.
• The G7 price cap coalition issued an enforcement alert detailing further information on Russian oil price cap breaches.
• Saudi Arabia’s decision to halt the planned oil capacity increase to 13mbpd by 2027 does not immediately affect the physical oil market but will limit the global supply buffer, Fitch Ratings said.