Christmas outages

ICE Brent crude prices rebounded, with ICE Brent February contract touching 75 $/b while time spreads were back in backwardation. Indeed, outages in OPEC countries continue to stack, with Libyan production likely to be down by 0.8 mb/d due to political tensions between the NOC and the oil ministry. Yesterday, we also learned that Shell had declared force majeure on its Forcados port January loading program (200 kb/d on average). The situation around Ecuador’s pipeline outage appears to be unresolved too. This will likely leave the Atlantic sweet crude market tight throughout Q1 22, despite a seasonal slowdown in refining runs. In the US, crude stocks continued to draw by more than 6 mb, without a significant export number as many expected the ad valorem tax incentive to influence US balances throughout year-end. Gasoline stocks built by more than 5 mb, a good sign for 2022 RBOB’ summer balances. Jet demand, at 1.5 mb/d, continued to be increasingly close to 2019’s pre-COVID levels while stocks continued to be drained. 

Share this news :

You might also read :

January 21, 2022

Mixed price evolution in Europe

European gas prices were mixed yesterday. The drop in Asia JKM prices (-8.04% on the spot, to €59.151/MWh; -2.64% for the March 2022 contract, to…
January 18, 2023

Is the peak of the energy crisis behind us?

The EnergyScan team held its quarterly webinar covering key trends and events on energy markets. In this webinar, our experts addressed the following topics, with…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?