$Dyna-Mac (NO4.SG)$$Rex Intl (5WH.SG)$$RH PetroGas (T13.SG)$...
Oil jumped more than 3% on Wed as the killing of a senior Hamas leader raised concerns that the conflict between Israel and Hamas could widen, increasing the likelihood of supply disruptions through the crucial Red Sea region. There was also a disruption at a major Libyan oil field due to protests and a statement from OPEC promising unity among the oil alliance's members.
Brent crude closed at USD78.25, while WTI crude settled at USD72.70.
The shutdown of El Sharara in Libya, a site which produces 300,000 bpd, comes amid heightened concerns of geopolitical tensions in the Middle East impacting supplies.
The Hamas deputy leader Saleh al-Arouri was killed in a drone strike in Beirut, the capital of Lebanon, in a further sign that the nearly three-month war between Israel and Hamas was spreading across the region.
Also on Wed, nearly 100 people were killed in blasts at an event to commemorate commander Qassem Soleimani who was killed by a U.S. drone in 2020, as Iranian officials blamed unspecified "terrorists" and vowed revenge.
Israel has neither confirmed nor denied that it killed the highly ranked Hamas leader or confirmed it was responsible the Iranian blasts, but it has kept up its assault on the Gaza Strip on Wed while Houthi rebels have also continued to attack vessels in the Red Sea.
A wider conflict could close crucial waterways for oil transportation, adding a premium to the market.
"While the geopolitical situation is a concern for the oil market, a fairly comfortable oil balance over the first half of 2024 does help to ease some of these worries," said analysts at ING, in a note.
Last month shipping giants temporarily paused Red Sea shipments amid attacks by Houthi rebels spurred by the Hamas-Israel war.
On Wed, the Yemeni militant group backed by Iran said it targeted a container ship headed towards Israel. The move comes after US Navy helicopters destroyed three Houthi boats on Sunday in response to a container ship hijack attempt on the Red Sea.
The threat of a broader conflict disrupting Iran's production has sent prices higher, at least temporarily. On Tue futures jumped more than 2% before giving up gains after Tehran deployed a warship to the Red Sea.
"The real threat to prices is the Iranian oil exports (near 2 million bpd) that could suddenly be taken off the global market," Dennis Kissler, senior vice president at BOK Financial, said on Wed.
On Wed OPEC said its members "re-affirm their steadfast commitment to the shared objectives of unity and cohesion" within the organization.
Last month Angola, a 16-year member of OPEC said it was leaving the cartel over quota disagreements.
U.S. crude stockpiles from the API industry group are due later Wed, a day later than usual due to Mon's New Year’s holiday, ahead of the official data on Thu.
A series of builds in U.S inventories over the past few weeks have rattled oil markets, especially as rising gasoline and distillate stockpiles pointed to cooling fuel demand in the largest consumer in the world.
OPEC+, will hold a Joint Ministerial Monitoring Committee meeting in early Feb, according to Bloomberg, with the members.
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soyabean89 : thanks to that rex go green...really the only green in field of red this mid week...terrible
bullrider_21 OP soyabean89 : Only oil stocks are in the green.
soyabean89 bullrider_21 OP : ya ..and env..
like cursing ppl die to gain profit...really need to be Andy Lau liao
SpyderCall : good post
I think it is funny how since the Russian war the U.S. has become a net exporter of oil. All of this during a democratic leadership, which is supposed to be extra green, or less accomodative to big oil.
bullrider_21 OP SpyderCall : Thanks. Yes, more of the dirty fuel. The US is extracting more oil from shale which helped it post record production. The US production together with increasing production from Brazil, and Guyana among others, helped to offset production cuts from OPEC+.
SpyderCall bullrider_21 OP : Very true
not-a-cow SpyderCall : No it hasn't, the US still imports more oil than it exports.
not-a-cow : Still trading within the same range so nothing special, just more news trying to sell a contrived narrative. Let me know when futures get to 78 and then there might be something worthwhile talking about, otherwise get ready for 70 again.
SpyderCall not-a-cow : That is not what I heard. Maybe I am wrong. Maybe the metric said something else, like net producer rather than consumer. Let me see if I can find the source.
SpyderCall not-a-cow : Looks like they became a net exporter from 2019 - 2022. Then, they flipped to a net importer at the end of 2023.
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