| At 10:18 am Singapore time (0218 GMT), the ICE February Brent futures contract was up $1.73/b (2.48%) from the previous close at $71.61/b, while the NYMEX January light sweet crude contract was $1.68/b (2.54%) higher at $67.94/b.
Sentiment in oil markets appeared to have turned a corner after steep price declines in the last two weeks sent oil prices skidding to three-month lows. US investment bank Goldman Sachs late last week said the recent price declines have been overdone, and current oil prices offered “compelling opportunities” to reinvest, according to media reports. Both benchmarks rebounded after falling last week for their sixth week in a row for the first time since November 2018 on concerns that the new coronavirus variant Omicron could impact global economic growth and fuel demand. (S&P Global Platts)
On Sunday, Saudi Arabia raised January official selling prices for all crude grades sold to Asia and the United States by up to 80 cents from the previous month. The price hikes were implemented despite a decision last week by the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, to continue increasing supplies by 400,000 barrels per day in January. Prices were also buoyed by diminishing prospects of a rise in Iranian oil exports after indirect U.S.-Iranian talks on saving the 2015 Iran nuclear deal broke off last week. European officials voiced dismay on Friday at sweeping demands by Iran’s new, hardline government. The talks are expected to resume middle of this week. (Reuters)
The latest Commitment of Traders reports from the Intercontinental Exchange and the US Commodity Futures Trading Commission showed investors liquidating their long positions in both the Brent and NYMEX crude oil benchmarks in recent weeks. Speculative net long exposures to the NYMEX light sweet crude benchmark have fallen to lows not seen since April 21, 2020, according to the most recent data until the week ended Nov. 30, US CFTC data showed. “The flushing out of longs leaves the door open for speculators to come back into the market at these lower levels,” Patterson and Yao said. (S&P Global Platts)
OIL MARKET ROUND-UP: (Bloomberg)
* China’s Oil and Gas Imports Surge Ahead But Coal to Stay Muted
* Enel Takes On Shell in Bid to Sell Australia Green Electricity
* Europe’s Fuel Imports From East Asia Are Set to Tumble
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