Markets

Early in the week ending Jan. 27, prices for ICE Brent, NYMEX WTI, and DME Oman were supported by positive sentiment related to the economic reopening of China, which was seen as boosting demand.

While the week-on-week increases as of Jan. 20 were smaller than those in the week ending Jan. 13, ICE Brent, NYMEX WTI, and DME Oman all reached highs on Jan. 20 that had not seen since Nov.

After the previous week's rout, futures prices for ICE Brent, NYMEX WTI, and DME Oman registered strong recoveries over the week ending Jan. 13.

Saudi Arabia set the Official Selling Price (OSP) for its heavy grade for buyers in the Far East at $1.25/bbl below the Middle-Eastern benchmark for Jan.—$2.50/bbl lower than the $1.25/bbl premium that had been in place for Dec.

Data from the Paris-based IEA showed that US cracking and coking margins slid by $3.77-6.01/bbl from July to Aug. after having plunged in the previous month as well.

A Reuters poll of 30 market watchers showed that price forecasts for Brent and WTI were downgraded by 4.6% and 3.4%, respectively, from projections in a Nov. survey.

Most petroleum futures prices rose over each of the weeks through Dec. 23 and Dec. 30, but the larger uptick was seen in the first week, when Winter Storm Elliott disrupted the US oil industry (as well as other sectors) with freezing temperatures and precipitation throughout large areas of the country.

While more-upbeat sentiment regarding a potential demand recovery helped to push oil futures prices higher over the week ending Dec. 16, it was not enough to recoup the rout suffered in the week ending Dec. 9.

The start of the Group of Seven Nations (G7)'s price cap on Russian crude and the EU's ban on imports of seaborne Russian oil on Dec. 5 did not offer the price support that some had earlier been anticipating.

Saudi Arabia set the Official Selling Price (OSP) for its heavy grade for buyers in the Far East at $1.25/bbl above the Middle-Eastern benchmark for Dec.—$1.20/bbl lower than the $2.45/bbl premium that had been in place for Nov.