- Oil rises for a third consecutive day amid optimism for a demand rebound
- March ’23 WTI gained $1 this morning to trade above $78/Bbl
- Yesterday, Fed Chair Powell said that last week’s stronger-than-expected jobs report showed that tightening monetary policy “will be a process that takes a significant period of time” (BBG)
- He added that more rate hikes would be needed, but disinflation had begun
- A weaker US Dollar also supported prices this week
- A weaker dollar (DXY Index) can cause foreign buyers of dollar-denominated commodities to pay less for the same amount of goods
- Additionally, President Biden said that the world would require "oil and gas for a while," adding that the need will last for "at least another decade" during his state of the union address yesterday (BBG)
- Russia says the EU price cap exemptions show that there is still a demand for its oil (Reuters)
- Russian Deputy Prime Minister Alexander Novak said that the price cap exemptions by the EU “emphasize that our oil products are in demand in Europe”
- According to the EU's most recent guidance, the price cap would no longer apply after crude oil or petroleum products were allowed for free circulation in a jurisdiction outside Russia and given to the landed buyer
- Additionally, the price cap also doesn't apply to Russian petroleum products if blending operations in a third nation "result in a tariff shift" or changes in the oil product type