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Oil Gaining on Potential Russian Production Cuts

OIL

Oil prices remain choppy as the market weighs up figures on oil flow reductions out of Russia as well as the potential return of Chinese consumption. News of potential Russian production cuts are helping to give crude strength early in the session.

  • Brent FEB 23 up 0.9% at 81.7$/bbl
  • WTI FEB 23 up 1.1% at 78.38$/bbl
  • Gasoil JAN 23 down -0.6% at 889.75$/mt
  • WTI-Brent up 0.07$/bbl at -3.34$/bbl
  • Russia may cut crude output by 5-7% in early 2023 in response to sanctions the RIA news agency quoted Deputy Prime Minister Alexander Novak as saying today.
  • Reuters reported yesterday that Baltic oil exports could fall by 20% in December versus last month because of recently imposed EU and G7 sanctions.
  • Brent FEB 23-MAR 23 up 0.11$/bbl at -0.58$/bbl
  • The market still awaits the official Kremlin response to the G7 price cap. Novak said the decree would ban sales of oil and oil products to countries that join the price cap and companies that demand its observance.
  • US gasoline crack down -0.5$/bbl at 16.93$/bbl
  • US ULSD crack down -0.5$/bbl at 51.81$/bbl
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