Energy Report: Giving In

This comes as Reuters reported President Vladimir Putin warned the West on Wednesday not to cross Russia’s “red lines”, saying Moscow would respond swiftly and harshly to any provocations and those responsible would regret it. At a time of acute crisis in ties with the United States and Europe, with Russian troops massed near Ukraine and opposition leader Alexei Navalny on hunger strike in jail, the Kremlin leader used his state of the nation speech to project a message of Russian strength and defiance in the face of outside threats. "We want good relations...and really don't want to burn bridges," Putin told both houses of parliament. "But if someone mistakes our good intentions for indifference or weakness and intends to burn down or even blow up these bridges, they should know that Russia's response will be asymmetrical, swift, and harsh."

On the supportive side, the Energy Information Administration (EIA) showed a jump in gasoline demand in the U.S. but record cases of COVID in India has tempered demand expectations. The Wall Street Journal reported that, "India reported more than 314,000 new coronavirus cases, the world’s biggest-ever single-day jump of new infections, as the country struggled to keep a surge of infections from overwhelming its healthcare system. Hospitals in New Delhi and other hard-hit cities have been turning away patients and running low on oxygen, beds, and other medical supplies.

Reuters reports that Libya’s oil production fell to about 1.0 million barrels per day (bpd) in recent days and could drop further amid budgetary issues, the country’s National Oil Corporation said on Thursday. Production fell from about 1.3 million bpd, the NOC said.

Yet in the short term, it looks as though demand fears have slowed the oil uptrend and we may trade in a range again and await headlines on Iran and Russia. Still, we expect a breakout higher at some point in the near term. We may trade sideways until we get news. 

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