Markets

Data from the Paris-based IEA showed that US cracking margins slid by $0.37-1.41/bbl from Aug. to Sept. while the heavy-sour coking margin recovered by $2.71/bbl after all margins decreased in the previous two months.

Futures closing prices for US benchmark NYMEX WTI edged higher by 1.0% from the end of Oct. to the end of Dec., but European benchmark ICE Brent declined by 2.3%, and Middle Eastern benchmark DME Oman decreased by 7.0% over the three-month period.

Saudi Arabia set the Official Selling Price (OSP) for its heavy grade for buyers in the Far East at $2.25/bbl below the Middle-Eastern benchmark for Feb.—$1.00/bbl lower than the $1.25/bbl discount that had been in place for Jan.

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.