OPEC Monthly Oil Market Report on Crude oil Prices Rise
Crude oil prices rose firmly in January, along with a steady rise in futures markets.
Major physical crude benchmarks increased about 10% month-on-month (m-o-m) on improving market fundamentals, particularly the prospect of tighter crude supply and the declining trend in global oil stocks.
The OPEC Reference Basket gained $5.21 to average $54.38/b. Crude oil futures prices extended gains in January, increasing on both sides of the Atlantic for the third consecutive month.
The futures price structure for the Brent, West Texas Intermediate Crude oil (WTI )and Dubai markets was sustained last month, evidence that the global oil market is improving, THIS IS resulting in an accelerating rebalancing process.
Refinery margins improved globally in January, with Complex configurations benefitting the most, OPEC MONTHLY OIL MARKET REPORT SAYS THIS IS backed by improved performance at the top of the barrel.
Meanwhile, in Asia, robust performance at the light end of the barrel filtered through gasoline markets, offsetting the poor performance registered across the middle and bottom sections of the barrel.
Although rates from West Africa picked up. A host of factors have weighed on freight rates, including the lingering impacts of the COVID-19 pandemic on oil consumption, and reduced supplies on the market.
Preliminary data show US crude imports averaged 5.9 MILLION BARRELS PER DAY mb/d in January, the highest figure since July 2020,
IN THE GLOBAL market backlog of ships waited offshore to be cleared.
OPEC MONTHLY OIL MARKET REPORT SAYS Early indications expect crude oil imports to rebound in January and February, as independents make use of a fresh round of import quotas.