Russia 625,000 bpd cut still needs approvalOil is trading basically unchanged from Friday, I was just reading what's driving the market and I thought that everyone should remember that the 625,000 bpd cut hasn't been approved yet from what I understand so it's better to know this than gamble at least till it is announced that the cut is effective because you can be assured that the market will react to change. We'll see tomorrow what mood the US market will be in.
WTI crude futures steadied above $76 per barrel on Monday, holding recent gains as the prospect of additional oil supply cuts from Russia outweighed rising crude inventories in the US and market concerns about persistent inflation and higher interest rates. Russia announced plans to cut oil exports from its western ports by up to 25% in March compared to February, exceeding its previously announced output curbs of 500,000 barrels per day. On top of that, investors expect China’s oil imports to hit a record high in 2023 amid rising demand for transportation fuel and as new refineries come online. Meanwhile, the latest EIA report showed that US inventories rose by 7.648 million barrels to 850.6 million in the week ending February 17th, the highest level since September. A hotter-than-expected US PCE reading, the Fed’s preferred inflation gauge, also bolstered expectations of further monetary tightening that raises
Russia normally exports up to 10 million tonnes a month or 2.5 million bpd of Urals crude from Primorsk, Ust-Luga and Novorossiisk and a cut of 25% would represent as much as 625,000 bpd if confirmed by Transneft and agreed by oil companies. Exclusive: Russia plans deep March oil export cuts, sources say | Reuters