OIL: US OIL: February 9 - Americas End of Day Oil Summary: Crude Higher

US OIL: February 9 - Americas End of Day Oil Summary: Crude Higher   

WTI Crude ended higher amid heightened US-Iran tensions after the US Maritime Administration effectively extended an advisory for US vessels that traverse the Strait of Hormuz, adding some upward pressure. US economic data remains nominally supportive though January’s delayed jobs report could show slower labor growth.

•     Today’s MARAD advisory is essentially unchanged to the prior advisory, which was due to expire today, apart from a small reference to a Feb. 3 incident in the Strait. Nevertheless, crude moved to daily highs on the headlines, with markets sensitive to US-Iran tensions. 

•     Iran's Foreign Minister stated that uranium enrichment is "non-negotiable" and ruled out discussing ballistic missiles or regional influence, with the US demanding a comprehensive deal covering all three areas, whilst threatening sanctions.

•     Iran’s Atomic Chief Eslami said Tehran could dilute its highly enriched uranium in exchange for all sanctions being lifted, Reuters reports citing ISNA. 

•     The US President is meeting the Israeli PM on Feb 11, with the date for the next US Iran meeting yet to be finalized. It is expected that the outcome of the US Israel meeting will influence the next steps in talks with Iran.

•     Iranian crude oil loadings decelerated toward the end of January amid heightened geopolitical tensions and tightening Western sanctions, according to Kpler.

•     Trump has removed the additional 25% tariff on India for buying Russian oil, in the first step of a trade deal announced last week. India’s foreign ministry said ensuring energy security remains the nation’s key priority. Indian refiners are avoiding Russian oil purchases for delivery in April.

•     Ukrainian President Zelensky said over the weekend that the US wants to see a Russia/Ukraine peace settlement by early summer.

•     Increased Orinoco Belt output boosts Venezuela's oil production to 1 mbpd - rtrs

• A Reuters survey forecasts : US crude oil stocks +950,000 bbl, gasoline stocks -2 mbbl, distillates -1.12 mbbl, refinery utilization +0.5%.

•     Cracks are mixed, with some support for gasoline cracks after reports of a further delay to the restart of the Dangote refinery’s RFCC.

• WTI Mar futures were up 1.2% at $64.36
• WTI Apr futures were up 1.3% at $64.16
• RBOB Mar futures were up 1.6% at $1.99
• ULSD Mar futures were up 0.2% at $2.42
• US gasoline crack up 0.6$/bbl at 19.04$/bbl
• US ULSD crack down 0.5$/bbl at 37.21/bbl