- WTI is down $2.14 to $46.96/Bbl, and Brent is down $2.23 to $50.03/Bbl
- Oil retreats from its recent highs as a broader market sell-off is underway on reports of a new coronavirus strain in London (Reuters)
- Countries have begun announcing travel bans from Britain to keep the spread of coronavirus's new strain to a minimum. U.S. Assistant Health Secretary Brett Giroir announced on Monday that "everything was still on the table," implying the U.S. could be the next country to impose a travel ban on Britain or even several EU countries where the new strain has been detected
- The strain, referred to by some as the B.1.1.7 lineage, is said to be up to 70% more contagious, though the lethality rate and effects are reported to be the same as the parent strain
- AEGIS notes the new strain could have an immediate impact on demand as the new coronavirus strain is likely to cause a change in consumer/ travel behavior. New international lockdowns threaten the recovery in transportation fuels demand
- Countries have begun announcing travel bans from Britain to keep the spread of coronavirus's new strain to a minimum. U.S. Assistant Health Secretary Brett Giroir announced on Monday that "everything was still on the table," implying the U.S. could be the next country to impose a travel ban on Britain or even several EU countries where the new strain has been detected
- Russia is rumored to support a 500 MBbl/d output hike in February, according to officials familiar with the country's oil policy (Bloomberg)
- A 500 MBbl/d increase would be the maximum allowed by the accord reached by the cartel in early December
- Saudi Oil minister Abdulaziz bin Salman has remained adamant about maintaining current output cuts through the end of 1Q2021
- The Baker Hughes oil rig count showed a gain of five rigs to bring the total oil rig count to 263
- The Permian basin added six rigs, while the Denver-Julesburg lost one rig, and the Eagle Ford rig count remained unchanged
- The recent rig additions have helped the total oil-directed drilling rig count to increase by 91, from a bottom of 172 rigs during the week ending August 14 to 263 rigs during the week ending December 18