Oil Summary at European Close: Crude Rallies

Crude has rallied during European afternoon trading, following a higher-than-expected draw in US stocks, and reduced output from Libya and North Dakota.

• Brent MAR 24 up 0.8% at 78.48$/bbl
• WTI FEB 24 up 1.3% at 73.48$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jan 12: Crude stocks -2,492 vs Exp -426, Crude production +100, SPR stocks +596, Cushing stocks -2,099
• North Dakota oil production is down today ~500-550 MBOPD due to the recent extreme cold and related operations, based on MNI correspondence with the pipeline authority.
• The global oil demand growth forecast for 2024 has been revised higher by 180kbpd to 1.2mbpd to reach almost 103mbpd, according to the IEA Monthly Oil Market Report.
• Vitol expects downward pressure on prices with Saudi Arabia to end its voluntary crude production cuts later this year.
• WTI prices at Magellan's East Houston terminal (MEH) have priced at a 45-cent premium per barrel average this month to its price at Midland, Texas - supported by tighter availability on Gulf bound pipelines according to Reuters.
• Record crude production from the Permian basin and strong pipeline flows to export hubs are boosting WTI crude prices at the Gulf Coast according to Reuters sources.
• Kazakhstan’s oil production from its three largest fields: Tengiz, Kashagan and Karachaganak, will remain at the level of 2023 this year.
• The US has added tanker owner Hennesea Holdings to its sanctions list due to transporting Russian oil above the G7 price, cap, according to the US Treasury.