Crude oil prices decreased on Tuesday morning trading below $70/bbl mark following an increase in US rig counts. Brent benchmark traded close to highest level since mid-2015, at $69.84/bbl decreased by 0.60% for the previous settle. However, WTI trailed in gains, increased by 6 cents/bbl trading at $64.36/bbl. The gap between the North American and the North Sea markers has narrowed now standing at $-5.58/bbl.
The Iranian tanker, Sanchi, sank in the East China Sea on Sunday, in the worst oil ship disaster in decades, producing a large oil slick, Chinese media and Japanese authorities said on Monday. The worries are growing over the impact to the marine ecosystem, the remaining 29 missing crew members are presumed dead.
BP said on Tuesday it expected to take a post-tax non-operating charge of around $1.7 billion in its fourth quarter results as part of the settlement of the deadly 2010 Deepwater Horizon spill in the United States.
Money managers increased their net managed position in both ICE Brent and NYMEX WTI contracts last week. ICE Brent short positions rose by 6.75 million bbl last week, while NYMEX WTI short positions dropped by 4.4 million bbl. Money managers increased their net long positions in ICE Brent by 15.44 million bbl. NYMEX WTI long positions soared by 36.9 million bbl.
The Oil Research Team
Supply Chain & Commodities Research