| Everyone on the FIS Bunker Desk wishes you a very happy and healthy New Year in 2022!
At 10:42 am Singapore time (0242 GMT), the ICE March Brent futures contract was down 89 cents/b (1.12%) from the previous close at $78.64/b, while the NYMEX February light sweet crude contract was down 85 cents/b (1.1%) at $76.14/b.
Oil prices have been firm for two weeks as easing concerns over the severity of the omicron variant of the coronavirus saw investors returning to take long positions. Most recent data from the Intercontinental Exchange showed net longs in the ICE Brent contract by money managers rising by 138 lots to 154,556 in the week ended Dec. 21 after falling for the previous 10 weeks. (S&P Global Platts)
The daily candlestick charts for both ICE Brent and NYMEX crude showed prices printing Doji candles in the last two trading sessions, indicating the upward momentum was likely exhausted amid a lack of fresh cues. Some supply was seen returning in West Africa. Exports of Nigeria’s Forcados crude have restarted from its terminal on the Niger Delta, oil major Shell said Dec. 30, though it added that a force majeure on crude loadings remains in place for the time being. Loading volumes of the grade are typically around 200,000 b/d. (S&P Global Platts)
Brent is on track to end the year up 53%, while WTI is heading for a 57% gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%. Both contracts touched their 2021 peak in October with Brent at $86.70 a barrel, the highest since 2018, and WTI at $85.41 a barrel, the loftiest since 2014. With oil hovering near $80, the Organization of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, will probably stick to their plan to add 400,000 barrels per day of supply in February when they meet on Jan. 4, four sources said, as they continue to wind back sharp production cuts implemented in 2020 (FOX)
In the US, the oil rig count fell for a second week, by 14 to 538 in the week ended Dec. 29, energy analytics and software company Enverus said Dec. 30. The count in the US’ biggest field, the Permian basin, fell by 5 oil and gas rigs to 300. (S&P Global Platts)
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