Market Insights > First Look

First Look - Iraq raises official selling price for crude

Oil is trading slightly higher after falling nearly $1 yesterday
- Chinese economic data showed consumer inflation fell back toward zero, in a setback for the country still struggling to boost its economy
- The US dollar is lower today, paring recent gains
Iraq raises crude prices for Asia buyers (BBG)
- Iraq will raise its official selling price to Asia for February, following a similar move by Saudi Arabia
- Prices were increased for shipments to Europe and the US as well
- Recent price increases in Middle Eastern crudes could be indicating a tighter physical market as OPEC continues to keep supply offline
Canada warns against oil trade war (BBG)
- Canada’s energy minister warned against tariffs on Canadian energy products, which have been considered by incoming president Donald Trump
- He added that the US does not have easy alternatives to Canadian oil and that nothing is off the table regarding potential trade retaliations
- Canada exports a large percentage of its crude production to the US, where refineries in the Midwest rely on the heavier grades

January keeps getting colder, keeping natural gas elevated
- The February contract was up 6c to $3.71 Thursday morning (8:19 CT)
- Total heating degree days are now estimated to be 1016 by Commodity Weather Group, which would land January 2025 as the fifth coldest in the 2000’s
- The cold outbreak in the 11-13 day portion of the model (Jan 19-21) is targeting Texas more strongly (CWG)
The EIA reported a 40 Bcf withdrawal from storage on Wednesday, a day earlier than usual, because of a National Day of Mourning today for President Carter
- The result compared to a five-year average withdrawal of 93 Bcf and 104 Bcf for last year at the same time
- The rest of January, based on weather models so far, could pull 900 Bcf from storage – averaging about 220 Bcf in draws for the next four weeks