Oil Summary at European Close: Crude Rises Strongly on Week

Crude prices are falling on the day but are up around 4-5% since the start of the week. Crude has been supported this week by lower US stockpiles, China stimulus prospects, Russian infrastructure attacks, and continued Red Sea freight disruption from Houthi attacks.

• Brent MAR 24 down -0.4% at 82.07$/bbl
• WTI MAR 24 down -0.7% at 76.83$/bbl
• As of Jan. 26 am, North Dakota oil production is estimated to be down ~30-80 MBOPD.
• The UK Maritime Trade Operations reported two missile attacks South West Of Aden on Friday. No vessels have been hit by the attacks, according to a report.
• Saudi Aramco is continuing to send oil cargoes through the Red Sea despite the recent security concerns driven by Houthi rebel attacks on vessels passing the waters.
• OPEC+ is not expected to decide on production volumes from April onwards at the next JMMC meeting on 1 February, but the group is likely to announce a decision in the coming weeks.
• Venezuelan President Nicolas Maduro warned that plans to hold elections in 2024 are in danger of collapse, possibly jeopardising US energy sanctions relief.
• Global crude inventories fell by 24m barrels last week according to Macquarie.
• Volumes of Russia’s Urals crude on idle tankers in the Baltic Sea are increasing, with four tankers holding about 3m bbl idle for at least a week near Ust-Luga.
• Around 14 tankers carrying a total of 10mn barrels of Russian Sokol grade crude have been stranded off the coast of South Korea.
• A tanker is expected to shortly load the first Libyan Sharara crude since the FM.