- Oil is trading lower, around $75, reversing some gains from yesterday
- Prices rallied more than $2/Bbl yesterday as the market continues to grapple with rising tensions in the Middle East and difficulties with shipping in the Red Sea
- Russian oil production is expected to remain steady in 2024 (Reuters)
- Moscow-based BCS said, "We anticipate no major changes in Russian output versus current levels. Increases in global demand will likely be offset by rises in output from the U.S.A., Venezuela, Iran, and others, keeping OPEC+ quotas largely stable"
- Russia has so far defied predictions that its production levels would decline following the implementation of Western sanctions and price caps
- The major risks to Russian production are a fall in oil prices or a strengthening of Western sanctions
- Due to the sanctions, nearly all Russian exports have been shipped to China and India
- US purchases additional crude for SPR (Reuters)
- The US Department of Energy has purchased 3 MMBbls in its latest bid to refill the strategic petroleum reserve
- The average purchase price was $77.91/Bbl and will be delivered to the SPR site in Big Spring, TX
- This brings the DOE’s total purchases for the SPR to 14 MMBbls