US Daily Oil Summary: Venezuela Sanction Relief in Jeopardy

The US is set to review oil sanctions on Venezuela’s energy sector if the country upholds its ban on opposition candidates running in the presidential election, according to Bloomberg.

• The US will allow a six-month sanctions relief to expire in April if opposition candidate María Corina Machado is barred from running. It is also considering additional measures against Venezuela, officials told Bloomberg.
• North Dakota's oil production is disrupted by around 10-40kbpd as of 29 January due to the recent cold spell according to the pipeline authority.
• US weekly gasoline demand (Sun-Sat) rose by 2.9% last week to above 8mbpd according to GasBuddy.
• The Biden administration has purchased 3.1m bbl of oil for the SPR following its request for proposal on Jan. 12, according to an announcement by the Energy Department.
• USD: Although the greenback trades mixed against major G10 counterparts, the USD index has risen 0.25% on Monday. It has been led higher by broad underperformance of the Euro, prompting a 0.4% decline for EURUSD, which briefly traded below 1.0800 for the first time since December 13.
• The Dallas Fed manufacturing index saw a large miss in January, falling to -27.4 (cons -11.0) after a downward revised -10.4 (initial -9.3). The 17pt slide followed a 9.5pt increase, leaving it close to recent lows of -29.1 in May at levels prior to pandemic lows not seen since Jan’16 and 2008-09.