- Oil was little changed after fluctuating between gains and losses on Monday
- Mar ’23 WTI gains 15c this morning to trade above $81/Bbl
- Expectations of recovery in Chinese demand and an uptick in mobility continue to support crude prices
- EU’s sanctions on Russian fuel products are set to take effect on Feb 5
- Seaborne Russian crude exports for the week ending January 20 were 2.98 MMBbl/d, broadly consistent with levels recorded for most of the second half of 2022 despite declines at some pacific ports
- Meanwhile, the US dollar hovered close to a seven-month low, supporting crude prices
- A weaker dollar (DXY Index) can cause foreign buyers of dollar-denominated commodities to pay more for the same amount of goods
- OPEC+ will review output levels on February 1 after cutting production late last year (BBG)
- Delegates from OPEC+ said they expect a ministerial advisory group to recommend maintaining current levels despite a tighter outlook as global demand keeps recovering
- The delegates said that they would not adjust existing levels until they get clarity about how Chinese demand is recovering and how sanctions are affecting the Russian supply
- The US will push China to cease importing Iranian oil (BBG)
- The US said it would put further pressure on China to stop purchasing Iranian oil as the White House works to impose sanctions intended to curb Iran’s nuclear activities
- “China is the main destination of illicit exports by Iran,” and talks to dissuade Beijing from such purchases will be “intensified,” said Robert Malley, the Biden administration’s special envoy for Iran