Oil Summary at European Close: Oil Reverses Early Gains

Crude markets are around rangebound after plunging into negative territory and reversing early gains. Concerns over OPEC’s ability to enforce its cuts are weighing against concerns of shipping disruption in the Red Sea.

• Brent FEB 24 up 0% at 79.42$/bbl
• WTI FEB 24 up 0% at 73.92$/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.
• Ibya’s Al-Waha Company announced the start of drilling operations for an exploratory well (T1-31) in partnership with Total Energies and Knoco Viables in Concession Area 31 via X.
• 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.
• Marathon Los Angles refinery shut down three units at its Wilmington section on Thursday according to WoodMac/Genscape.
• TotalEnergies Feyzin refinery restarted the 117kbd crude unit and 38kbd VDU Thursday afternoon after a brief outage according to WoodMac/Genscape.
• 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.