AMERICAS OIL: WTI Off Low but down notably after Colombia Reverses Course

January 27 - Americas End-of-Day Oil Summary: WTI Off Low of $72.44 but down notably after Colombia Reverses Course and Accepts Deportees from US

• Energy markets also slumped in concert with slumping equity markets, which are significantly lower following the DeepSeek Chinese rollout that undermined technology stocks.
• President Trump had threatened to impose a 25% tariff on Colombia after they initially refused to receive a planeload of migrants being sent back from the US. However, the White House said Colombia had agreed to the US terms, and the crisis was averted.
• A survey of about 50 private explorers working across the major US shale basins showed almost two-thirds expect output to grow by 5% or less this year, Jefferies analysts wrote.
• The NOAA 6–14-day outlook is net bearish, with above-normal temperatures expected in the Southeast and mid-Atlantic regions while the far Northwest is below normal. Thus, the outlook is bearish with only part of PADD 5 expecting elevated heating demand.
  • WTI Mar futures were down 2.0% at $73.17
  • WTI Apr futures were down 2.0% at $72.50
  • RBOB Feb futures were down 1.0% at $2.03
  • ULSD Feb futures were down 2.3% at $2.46
• CVR 132 kb/d Coffeyville refinery in Kansas started a turnaround early, by about three weeks Bloomberg said. The 45-day turnaround includes all main processing units at the plant that processes medium-sour crude.
• Global airline passenger capacity is set to decline by 0.61m seats on the seven days commencing from Jan 27, OAG said.
• Global implied passenger jet fuel demand remained stable in the week to Jan 27 according to BNEF.
• OPIS’ Tom Kloza says Goldman Sachs reiterated its view of $3.30/gal average retail gasoline this year while leaving crude targets unchanged.