Oil End of Day Summary: Crude Set for Strong Gains

Crude prices are headed for their highest close since Jan. 31. Prices are finding support from diminishing hope of any near-term ceasefire deal in Gaza and thus no end in sight for Middle East tensions.

• WTI MAR 24 up 3.2% at 76.19$/bbl
• Israeli PM Benjamin Netanyahu, appeared to pour cold water on a ceasefire, telling reporters that Israel, "will not suffice with less," than a decisive victory in their war against Hamas.
• The attacks in the Red Sea have become increasingly dangerous in the last days and the level of threats have likely not peaked yet, CEO Vincent Clerc said.
• Venezuela has vowed to respond forcefully if drilling to start in the contested waters off Guyana, according to the AFP.
• OPEC+ supply cutbacks this year have “been close enough to expectations” according to Deutsche Bank while BofA see cuts “positive” compared with initial market expectations.
• Damage to Russian refineries from drone attacks could undermine commitments to OPEC+ supply cuts as it forces up exports, according to Reuters.
• Oil demand is better than expected in the first week of February with a boost in China from the Lunar New Year holiday and with better weather in the US and Asia according to JPMorgan.
• US oil and gas producer ConocoPhillips plans to boost production this year by around 6% with the midpoint of around 1.93m b/d.
• DNO’s oil production in the Kurdistan region has largely recovered to levels seen before the shutdown of the pipeline to the Turkish port of Ceyhan in March 2023
• Freight rates for Suezmax voyages loading in the Mediterranean and Black Sea and discharging in the Far East have spiked amid instability in the Black Sea, according to Platts.