Oil Mid-Day Summary: Crude Ticks Up

Oil prices are higher Friday, again as concerns of rising tensions in the Red Sea take centre stage once again. Markets sold off yesterday after Angola announced it was to leave OPEC.

• Brent FEB 24 up 0.5% at 79.77$/bbl
• WTI FEB 24 up 0.6% at 74.37$/bbl
• 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.
• Twenty-four Venezuelans have been freed as part of this week's prisoner exchange deal with the United States according to Venezuelan opposition presidential candidate Maria Corina Machado.
• Brazil is expected to receive record levels of diesel and gasoil from Russia this month – ahead of supply cut pledges in Q1.
• ExxonMobil halted the 52kbd hydrocracker at its Rotterdam refinery December 21 according to WoodMac/Genscape.
• Wires carrying comments from Kremlin spox Dmitri Peskov. States that 'Any Western move to seize Russian assets abroad would deal a serious blow to the international financial system.'
• CDU capacity utilisation rates in China’s independent refineries averaged 63.7% in the seven days to Dec. 21, down 0.62 percentage points on the week, according to OilChem.
• 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.