Brent softened this week as disbelief continued to be suspended for the promised (read: threatened) tariffs from the US, and the market digested and rebalanced following the rally to over $82.00/bbl last week on the news of new sanctions on Russia and Venezuela that included the Russian dark fleet. Trump was inaugurated on Monday and signed a stack of executive orders. Following this signature marathon, he made broad threats to China, Mexico and Canada, threatening tariffs and instructing agencies to ‘examine their trade relationships’. Regarding oil, the DBD (drill baby drill) rhetoric is in full swing, and Trump signed an order to increase Alaskan oil production following declaring a “national energy emergency” on Monday. The ceasefire in Gaza is holding, and the Houthis lifted their ban on international vessels transiting the Red Sea as maybe the paperwork was mounting up for the hassle-free Red Sea passes. A bit of risk premia was chipped off the price, although the number of attacks has been on a downtrend. Ice and snow reached almost all of Texas, and Florida is over after the deep freeze in the south caused a handful of refineries to go offline. Hopefully, demand warms up, too!
