Overview and Outlook: Energies are mixed this morning amidst thin liquidity due to the Holiday. China set a second consecutive daily record for covid cases yesterday, reporting 32,694 new cases. Restrictions have continued to escalate with growing case numbers, threatening demand and the long-term health of China’s economy. The G7 and EU are continuing talks regarding a price cap on Russian oil. The group discussed a cap between $65-$70 this week however an agreement has yet to be signed. This price came in higher than expected and also higher than current delivery values for Russian Urals to Europe which surprised the market on Wednesday. Additional talks are expected to be held today and any adjustments made could provide volatility in the market.
Refinery Outages: Global refinery outages fell to 1.89 million bpd this week. Outages are expected to fall below 1 million bpd by the start of 2023.