Oil End of Day Summary: Crude Rises

Despite softening as US close approaches, crude has maintained its gains on the day. Growing disruption in the Red Sea, with companies such as BP and Equinor diverting their cargoes has sparked fears for supply passing through the key chokepoint.

• WTI JAN 24 up 1.2% at 72.27$/bbl
• Vessel attacks in the Red Sea are increasing. Yemen’s Iranian-backed Houthi rebels have claimed responsibility for attacks on two ships Dec. 18 - the Swan Atlantic and MSC Clara - using naval drones, according to Alarabiya news.
• The US is seeking a regional coalition to secure the Red Sea shipping corridor, with a virtual summit set for Dec. 19.
• BP and Euronav are the latest companies to pause all of its tanker traffic through the Red Sea, while Equinor is redirecting its vessels.
• Oil exports out of Texas are surging in the final weeks of 2023, according to Reuters, driven by record production levels and the need to avoid high year-end taxes on inventories.
• Venezuela and Repsol signed a contract for a jointly run venture as the former looks to boost its production, according to Bloomberg.
• Russia announced it will extend its existing exports cuts by potentially 50kbpd or more in December, deepening its cuts beyond the 300kbpd previously agreed for this month, Russian Deputy PM Alexander Novak said.
• Russian president Vladimir Putin has extended retaliatory measures against the G7 price cap placed on its oil exports until the end of June 2024.
• Russian oil processing rose to around 5.7mbpd in the week to 13 December.
• The amount of crude oil held around the world on tankers stationary for at least seven days fell 13% on the week 73.32m bbl as of Dec. 15, Vortexa data showed.