AMERICAS OIL: WTI crude is up, heading for another weekly gain
WTI crude is up, heading for another weekly gain ahead of Donald Trump’s inauguration Monday as US sanctions impact global supply, redirecting flows and increasing shipping rates. Potential US interest rate cuts this year could boost demand though uncertainty remains around Chinese oil demand growth.
• Chinese economic data out Friday showed higher-than-expected economic growth for Q4, but oil refinery throughput fell 1.6% in 2024 amid soft demand and weak margins. China’s apparent oil demand fell 2.2% to 13.93mbpd in Dec, Bloomberg showed.
• The incoming Trump administration is expected to take a tough stance on Iran and Venezuela and potentially introduce tariffs which could impact US imports of Canadian oil.
• Incoming nominee for Treasury secretary Scott Bessent said he would support the increased sanctions against Russia in a bid to ends the Ukraine conflict.
• The potential ceasefire in Gaza faces a vote in the Israeli parliament though key ministers have yet to approve the deal though it is supposed to take effect Sunday. The ceasefire could halt Houthi attacks on the Red Sea.
• Colonial Pipeline estimates Line 1 will reopen Friday. Motiva told shippers that fuel shipments were resuming with a partial delivery of fuel made to Macon, Georgia and deliveries expected in Atlanta Saturday.
• LyondellBasell’s 246kbpd Houston, Texas, refinery will begin hsutting units from Jan 20, according the Bloomberg sources.
- WTI FEB 25 up 0.1% at 78.73$/bbl
- WTI MAR 25 up 0.0% at 77.83/bbl
- US gasoline crack up 0.1$/bbl at 10.35$/bbl
- US ULSD crack down 0.7$/bbl at 30.95$/bbl