Quantum Commodity Intelligence – Crude oil futures in Asian trading hours Wednesday were little changed, although benchmarks continued to struggle after several days of decline.
Front-month Mar25 ICE Brent futures were trading at $79.05/b (0700 GMT) versus Tuesday’s settle of $79.29/b, coming after a run of four consecutive declines.
At the same time Mar25 NYMEX WTI was trading at 75.48/b, versus Tuesday’s close of $75.83/b.
While President Trump has announced plans to overhaul US energy policy, the broader pledges including more drilling and filling the SPR, along with the sanctions policy, will take time to review and implement.
“On his first day, Trump withdrew the US from the Paris Agreement and reversed Biden’s ban on offshore oil and gas drilling in part of the US continental shelf to push for more oil and gas output,” said City Index analyst Fiona Cincotta in a research note, adding the presidential change set the mood for lower prices.
More pressing is the issue of tariffs which are set to be applied to Canada from 1 February, with some 4 million bpd of crude exported to the US set to hit with the 25% surcharge.
On the issue of sanctions, any immediate reversal on Russia is seen as unlikely, while Iran policy could also be parked until later in the year.
More immediately, the US may move to ban Venezuelan imports, which would tighten availabilities of sour crude for refiners along the US Gulf Coast.
Oil traders were also watching for impacts from the latest US freeze as the Arctic conditions move further south, including into Texas.
Around 150,000 bpd of crude has already been knocked-out in the North Dakota, which borders Canada, but the freeze-off in the US is working its way south.
Oil and gas infrastructure in southern states are more sensitive to freezing conditions, leaving production, pipelines, ports, refineries and distribution networks all vulnerable to the frigid conditions.…Read more by Quantum Commodity Intelligence