OIL: US OIL: January 2 - Americas End of Day Oil Summary: Crude Near Unchanged
US OIL: January 2 - Americas End of Day Oil Summary: Crude Near Unchanged
WTI Oil ended near unchanged with oversupply concerns outweighing support from geopolitical risks in Venezuela and Iran. OPEC+ are expected to leave production levels unchanged at Sunday’s meeting.
- The US imposed additional sanctions on Venezuela late on Dec. 31, which included additional shadow fleet vessels and four China-based entities tied to the vessels.
- The sanctions are the latest move in President Trump’s pressure campaign against Maduro. US forces have intercepted two vessels in recent weeks, while a third turned away from Venezuela after being pursued by US forces.
- Geopolitical tensions appear to be rising in Iran, with domestic protests emerging in recent days amid worsening economic conditions. Trump has said the US ‘will come to the rescue’ of peaceful protestors if they are attacked.
- OPEC+ partners are likely to confirm its pause in oil output hikes when it meets on Sunday amid signs of growing global oversupply, according to Bloomberg citing three delegates.
- National security advisers from the Coalition of the Willing are to hold a meeting on Jan. 3 in Ukraine, followed by a meeting of its leaders planned for Jan. 6 in France. Talks between leaders of the US, Ukraine and the coalition nations may follow the same month, Zelenskiy said.
- India is asking refiners for weekly disclosures of Russian and US oil purchases, Reuters reports citing people familiar with the matter.
- Middle East crude oil benchmark Dubai slipped into a discount against swaps on Friday for the first time since December 2023, according to Reuters.
- The North Sea Buzzard oil field restarted production late afternoon Thursday, Cnooc International said in a statement cited by Bloomberg.
- Crack spreads are lower amid weakness in the underlying product futures with gasoline demand typically slumping after the holidays while heating oil demand enjoys some support before milder conditions return next week to the Northeast US.
- WTI Feb futures were down 0.2% at $57.32
- WTI Mar futures were down 0.2% at $57.10
- RBOB Jan futures were down 1% at $1.70
- ULSD Jan futures were down 0.3% at $2.12
- US gasoline crack down 0.6$/bbl at 14.03$/bbl
- US ULSD crack down 0.1$/bbl at 31.55/bbl
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USDJPY TECHS: Corrective Cycle In Play
- RES 4: 158.87 High Jan 10 and a key resistance
- RES 3: 158.29 2.618 projection of the Sep 17 - 26 - Oct 1 price swing
- RES 2: 158.00 Round number resistance
- RES 1: 156.58/157.89 High Nov 28 / 20 and the bull trigger
- PRICE: 155.08 @ 16:41 GMT Dec 3
- SUP 1: 154.67 Low Dec 01
- SUP 2: 154.42 Low Nov 17
- SUP 3: 153.27 50-day EMA
- SUP 4: 151.54 Low Oct 29
The trend set-up in USDJPY is bullish and recent weakness appears corrective. Note that a deeper retracement would allow a recent overbought condition to unwind. Support at 155.33, the 20-day EMA, has been breached. An extension lower would expose the 50-day EMA at 153.27. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. A resumption of the uptrend would open 158.00.
US: Trump Oval Office Announcement Underway Shortly
US President Donald Trump is shortly due to make an announcement from the Oval Office. LIVESTREAM The announcement is expected to relate to new fuel economy standards, with executives from Ford, General Motors, and Stellantis in attendance.
- CNBC notes, "The Trump administration will propose rolling back the standards implemented by former President Joe Biden last year, sources told Reuters. Biden required passenger cars and light trucks to have a fuel efficiency of about 50 miles per gallon by 2031."
- The report continues, "The oil industry group the American Petroleum Institute has lobbied the Trump administration to repeal the Biden fuel economy standards, arguing that they aim to phase out liquid fuel vehicles."
- Trump said at a Cabinet meeting yesterday, “We’re bringing back the automobile business," adding, “I think we’ll be bigger than we’ve ever been in the auto business.”
PIPELINE: Corporate Bond Update: $2.5B Citigroup PerpNC5 Launched
- Date $MM Issuer (Priced *, Launch #)
- 12/03 $2.5B #Citigroup PerpNC5 6.625%
- 12/03 $1B #Deutsche Bank 6NC5 +85
- 12/03 $850M #Avalon Holdings 5Y +115
- 12/03 $500M *Protective Life +3Y +65
- 12/03 $500M Freedom Mortgage 5.5NC2.5
- 12/03 $500M #Western-Southern Global 7Y +90
- 12/03 $500M Standard Building Solutions 8.253.25 6%
