Oil Summary at European close: Crude Falls

The oil market is falling on the day, with further pressure from an unexpected build in US crude stocks. Soft economic data from China and resultant demand concerns are also providing downside. Upside risks remain the escalation in the Middle Eastern conflict.

• Brent MAR 24 down -1% at 82.07$/bbl
• WTI MAR 24 down -1.5% at 76.69$/bbl
• Countries in the Middle East are awaiting the US response to the killing of three of its service personnel in a drone strike at a Jordanian outpost.
• EIA Weekly US Petroleum Summary - w/w change week ending Jan 26: Crude stocks +1,234 vs Exp -225, Crude production +700, SPR stocks +892, Cushing stocks -1,972
• The EU is aiming to launch a naval mission to help commercial ships pass the Red Sea from February according to the bloc’s foreign affairs chief Josep Borrel.
• The number of tankers carrying crude oil through the Gulf of Aden has significantly declined after a laden fuel-tanker was hit by a missile strike on Friday, Clarkson data showed.
• Saudi Aramco may raise the price for its flagship Arab Light crude to Asia in March by 30ct-70ct/bbl, according to a Reuters survey.
• High spare capacity and persistent reduction in output suggest an “astute time” to change Saudi Arabia capacity growth plans according to Wood Mackenzie.
• A Libyan crude loading program shows Sharara is expected to export six cargoes totalling 130kb/d in February compared to just 41kb/d in January according to Bloomberg.
• Russia’s Deputy PM, Alexander Novak, said he expects the discount on Russian oil vs global benchmarks to start going down again soon based on Tass reports.
• - MNI COMMODITY WEEKLY: Infrastructure Projects and Sanctions Set to Alter Gulf Coast Refinery Operations - Full piece here: https://enews.marketnews.com/ct/x/pjJscQSNwegI6a9icRlySw~k1zZ8KXr-kA8x6nDX8CgptIPjO1OcQ