Oil End of Day Summary: Crude Retreats

Crude markets have fallen back to new intraday lows as US close approaches, relinquishing most of yesterday’s gains. The situation in the Red Sea continues to concern the market, but news of shippers returning to the region will ease some concerns.

• WTI FEB 24 down -1.7% at 74.26$/bbl
• On Tuesday Houthi revels attacked the MSC United VIII container ship that was headed for Pakistan. Despite that, major shipping firms such as Maersk and CMA CGM were resuming passage through the Red Sea.
• Canadian oil producers Canadian Natural Resources and MEG Energy are urging the nation’s energy regulator to approve Trans Mountain Pipeline’s variance request, according to Reuters.
• Iranian oil Minister Javed Owji said Dec. 27 that he thanked Iraqi officials for cutting oil output and said both nations share a common position vis a vis OPEC+, according to Reuters.
• Russia has shipped 50% of its oil and petroleum exports to China, while shipments to India have risen to a share of 40% this year, Russian Deputy PM Alexander Novak said, cited by Bloomberg.
• Russian Deputy PM Alexander Novak said Dec. 27 that Brent oil prices will trade at $80-85/b in 2024, according to Platts.
• China has released the first batch of 2024 crude oil import quotas to 11 non-state-owned refineries in mid-December with a total volume of 3.68mn tons according to OilChem.
• Nigeria’s Bonny Light crude oil loadings are scheduled to rise to four cargoes totaling 3.9mn barrels, or 134kbpd, in February, down from 158kbpd scheduled for January, while Forcados loadings are expected to rise according to a loading program.