- Oil is up more than $1 to $76.35, trading at the highest level since November
- Yesterday the EIA reported a larger-than-expected draw in oil inventories of 9.2 MMBbls, the largest weekly decline since August
- Canada’s long-delayed Transmountain pipeline expansion is expected to begin the line-fill process in February and begin loading vessels in March or April
- Line-fill will require about 4.5 MMBbls of crude
- Weak Chinese demand may curb stockpile refill (BBG)
- After drawing on inventories in 2023, China will need to refill its inventories, but weak demand may lead to a slower refill process
- Inventories in China fell to an eight-month low at the start of the year, according to data from Vortexa
- Chinese inventories may rise by more than 60 MMBbls this year, according to Energy Aspects
- Emma Li of Vortexa said, “The nation could be looking to restock some inventories this year, but mostly for refinery use, with active buying for April to May arrival, as refiners prepare to boost runs post seasonal maintenance”
- Indian oil demand is seen growing at the slowest rate in four years (BBG)
- Refined product demand in India is expected to grow at the slowest pace in four years as the country's economy may slow down
- Data from India’s Oil Ministry shows an expectation of a 3% growth rate, representing a moderate slowdown in product demand
- Despite this, India is still expected to be the second-largest contributor to oil demand growth this year, with China being the largest
