Oil End of Day Summary: Crude Surges on Houthi Tanker Strike

Crude has surged to be trading higher on the day after reports that the Houthis struck an oil tanker off Yemen. WTI is up 6.5% since the start of the week and heading towards its highest close since Nov. 29.

• WTI MAR 24 up 0.8% at 77.97$/bbl
• A merchant ship has been struck and caught fire around 55m Southeast of Aden in the Red Sea, according to Ambrey analytics. A Houthi spokesperson via X, that it was the Marlin Luanda (IMO 9829899). It is believed to have been carrying naphtha.
• As of Jan. 26 am, North Dakota oil production is estimated to be down ~30-80 MBOPD.
• The US oil and gas rig count rose by 1 on the week to 621, according to Baker Hughes.
• OPEC+ is not expected to decide on production volumes from April onwards at the next JMMC meeting on 1 February, but the group is likely to announce a decision in the coming weeks.
• Venezuelan President Nicolas Maduro warned that plans to hold elections in 2024 are in danger of collapse, possibly jeopardising US energy sanctions relief.
• Global crude inventories fell by 24m barrels last week according to Macquarie.
• Volumes of Russia’s Urals crude on idle tankers in the Baltic Sea are increasing, with four tankers holding about 3m bbl idle for at least a week near Ust-Luga.
• Around 14 tankers carrying a total of 10mn barrels of Russian Sokol grade crude have been stranded off the coast of South Korea.
• A tanker is expected to shortly load the first Libyan Sharara crude since the FM.