AMERICAS OIL: WTI crude is trading lower on the day
WTI crude is trading lower on the day following the 30-day postponement on US tariffs for Canada and Mexico, but market uncertainty remains high amid increasing trade tensions with China. China added tariffs on US imports, including 10% on US crude oil, in a swift response to new US tariffs on Chinese goods.
• President Trump plans to increase US production, while OPEC kept its production policy unchanged at its review yesterday and is still scheduled to begin returning voluntary cuts to the market from April.
• A focus for OPEC+ remains on compliance with quotas. Kazakhstan will do whatever is necessary to fulfil its obligations in 2025 and 2026, Kazakhstan's energy ministry said despite rising Tengiz output.
• The impact from sanctions remains uncertain as US talks with Venezuela opening the possibility of an increase in its supply, while Iran and Russia sanctions tighten global markets.
• China’s 15% tariff on US LNG is likely to have limited near-term impact, Bloomberg reports, because Chinese buyers have already been offloading their cargoes to other markets including Europe.
• Gasoline and diesel cracks have pulled back from the highs yesterday but are holding onto most of the gains seen through January.
- Flint Hills 343kb/d Corpus Christi refinery in Texas leaked jet fuel from a transfer line on Feb 2.
- WTI MAR 25 down 2.2% at 71.56$/bbl
- US gasoline crack up 0.1$/bbl at 14.96$/bbl
- US ULSD crack up 0.2$/bbl at 29.57$/bbl