Oil prices have risen back to the mid-$70s this week as a result of tighter U.S. crude inventories and a force majeure on Libyan crude oil exports.
Friday, December 23rd, 2021
The interdependence of oil prices and Omicron news updates has subsided somewhat this week as the overall decline in US crude stocks and the Libyan supply disruption have been moving prices upwards. Despite US crude supply hovering around 11.6-11.7 million b/d, robust demand triggered another week-on-week decline in inventories at a whopping 4.7 million barrels. Libya degenerating into another bout of internal strife has taken off some 300,000 b/d of crude in an instant, providing a welcome Christmas gift for the oil bulls. As of Tuesday, Brent traded around $75.5 per barrel whilst US benchmark WTI was last seen around $73 per barrel.
European Gas Prices Drop Off Yesterday’s Peak. Just as Gazprom is filling up the second line of Nord Stream 2, to be ready by year-end, day-ahead TTF futures dropped 20% day-on-day to €132 per MWh ($48 per mmBtu), potentially signaling more Russian supply coming to Europe soon.
Iran Talks Reconvene for Post-Christmas Round. The eight iteration of negotiations on Iran’s nuclear program will start 27 December in Vienna, less than two weeks after the previous session was cut short by the Iranian delegation.
Argentina to Build Vaca Muerta Gas Pipeline. Despite Argentina’s near-default state, its authorities are reportedly set to sign a decree to start the construction of a major gas pipeline that would connect the plentiful Vaca Muerta shale play to Buenos Aires, boosting YPF (NYSE:YPF) prospects.
