- Oil extends losses after yesterday’s sell-off
- WTI fell by over $1 to trade around $75/Bbl
- Crude futures saw their biggest daily decline in two weeks following signs of a strong US economy from the US services industry
- The USD Index (DXY – a proxy for US Dollar strength against a basket of other international currencies) recovered slightly from its recent five months lows
- A stronger dollar (DXY Index) can cause foreign buyers of dollar-denominated commodities to pay more for the same amount of goods
- Beijing also followed Shanghai and Shenzhen in easing strict Covid curbs
- Many major cities have reduced mass testing as optimism grows over China’s reopening plans
- Chevron to officially assume control of an oil project in Venezuela this week (BBG)
- The first shipment, which might include 1 MMBbl, will be loaded later this month and follows the Biden administration's granting of permission for Venezuela to resume crude production
- Chevron is the last major company still functioning in Venezuela, with a production capacity of about 0.200 MMBbl/d
- The Biden administration is expected to meet with oil and gas executives on Thursday to discuss US’s capabilities to bolster Ukrainian energy infrastructure as Russia targets Ukraine's energy sources (Reuters)
- The US DOE advocated focusing on providing "steady and reliable energy" to customers at home in addition to "supporting allies abroad"
- "As you know, Ukrainian energy assets are being aggressively targeted in an effort to take advantage of the winter's coldest temperatures and harshest weather conditions. Together, we can help to boost Ukrainian resilience," wrote David Turk, US Deputy Secretary of Energy, in a letter to oil and gas executives