Crude-oil futures remained steady in the face of mixed market conditions, with traders unwinding bullish positions ahead of the long Christmas weekend. However, underlying support for the petroleum market was provided by concerns over supply due to increasing militant attacks on ships in the Red Sea.
At 11:45 a.m. EST on Friday, February NYMEX West Texas Intermediate (WTI) crude futures saw a slight increase, with prices rising by about 10 cents to $74 per barrel (bbl). Similarly, March WTI inched up by 5 cents to $74.10/bbl. Earlier in the session, WTI futures had experienced gains of over $1/bbl, but these gains fizzled during midmorning trading.
Meanwhile, London-based ICE Brent crude for February delivery declined by 10 cents to $79.30/bbl, with March Brent slipping by the same amount to $79.05/bbl.
Despite the recent fluctuations, WTI is still expected to record gains of $2-3/bbl for the week, while Brent is on track to increase by over $3/bbl.
Another factor impacting the market was Angola's announcement of its decision to exit OPEC, which triggered some profit-taking. Angola's oil minister, Diamantino Azevedo, stated that OPEC membership no longer served the country's interests.
Additionally, key shipping companies such as Maersk, as well as oil majors including BP and Equinor, have decided to avoid the Red Sea due to attacks by the Houthi militant group. The group has claimed that these actions are a response to Israel's attacks in Gaza. As a result, shippers will impose extra charges related to re-routing ships.
In the spot market, Los Angeles' physical CARBOB gasoline premiums witnessed a significant increase of over 30 cents, following a similar rally in San Francisco. Recent data from the California Energy Commission revealed a decline in refinery production of California's boutique gasoline, indicating possible unplanned refinery outages.
