Brent crude oil hits $94/b

The price of Brent 1st-nearby touched $94/b overnight. Saudi Arabia’s price hike for March for its Asian, US and European customers sends a confidence signal to the market that demand is robust. In addition, Vitol believes that China’s low crude stocks can be expected to rebuild now that the holiday season is over. 

We often focus on the tightness in the diesel market, but gasoline is not immune: in the US, pump prices ($3,423/gallon) have just exceeded their November level, when the Biden administration made an emergency decision to release some of its strategic reserves to increase supply. Refiners’ margins on gasoline are at a two-year high in Asia as well. The US may be tempted to accelerate Iran’s return to the market. It granted some exemptions last week to sanctions on Iran. Nuclear talks resume tomorrow in Vienna.