- Oil is trading higher, reversing some losses from yesterday, after more US attacks in Yemen
- The Federal Reserve kept rates unchanged yesterday, and Chairman Powell said that interest rate cuts in March are “probably not the most likely case”
- OPEC+ members are set to decide on extending production cuts into 2Q 2024 in early March to avert a surplus and keep prices higher (Bloomberg)
- Furthermore, Algeria said it's ready to continue OPEC+ cuts past March
- Chinese refining margins remain low, signaling weak crude demand (BBG)
- Private oil refiners in China may be forced to curtail production due to weak margins driven by high oil prices and lower product prices
- Sanctioned Russian crude has become costlier, which has hit independent refiners who have been relying on it
- Economic data from China has continued to show slower growth, spurring additional calls for more government stimulus measures
- In contrast, Chinese factory activity expanded for the third consecutive month in January
- Russian oil enters the US through a Bahamas loophole (BBG)
- A refiner imported 10 MBbls of Russian crude, bypassing the US sanctions through a blending loophole at a Bahamas storage terminal
- The crude was brought into PBF Energy’s Delaware refinery in November but did not violate sanctions because it was imported to the Bahamas before the start of sanctions and mixed with other grades of oil
