Oil End of Day Summary: Crude Ticks Up

Crude markets are heading towards US close marginally higher on the day. Earlier volatility saw a large sell-off in the European afternoon session. Fears of shipping disruptions in the Red Sea are providing upside, while further scepticism around OPEC’s additional supply cuts adds downside.

• Brent FEB 24 up 0.1% at 79.47$/bbl
• WTI FEB 24 up 0.2% at 74.01$/bbl
• Iraq’s Oil Ministry spokesman has affirmed Iraq’s support for the OPEC+ agreement and the country’s commitment to voluntary cuts, according to the Iraqi News Agency.
• Clarksons Research indicates vessels arriving in the Gulf of Aden are down 43% in recent days in gross tonnage versus 1H December and down 82% for containerships due to Houthi rebel attacks.
• On 21 Dec, the US Department of Defense confirmed that 'more than 20 nations' have now signed up to the 'Operation Prosperity Guardian' intended to ensure the safety of shipping in and around the Red Sea. However, the operation does seem to be showing some signs of strain.
• Ibya’s Al-Waha Company announced the start of drilling operations for an exploratory well (T1-31) in partnership with Total Energies and Knoco Viables in Concession Area 31 via X.
• Russia plans to cut seaborne oil exports in January by 0.1-0.2m b/d compared to December levels due to increased refinery throughput, sources told Reuters.
• Angola’s decision to leave OPEC will not affect oil market or alter the group’s production dynamics, according to DNB Markets’ Helge Andre Martinsen.
• Angola’s withdrawal from OPEC could open the way for further investment from China, according to Reuters.