On February 3, 2023, crude oil prices fell sharply, with February WTI crude closing down by $1.61 (-2.76%) and February RBOB gasoline down $0.0467 (-2.66%). This decline followed Ukrainian President Volodymyr Zelensky’s announcement that a 20-point peace plan is 90% ready but hinges on an upcoming meeting with Former President Donald Trump in Florida.
In related developments, the U.S. launched strikes on ISIS targets in Nigeria, part of a collaborative security measure with the Nigerian government, which is significant as Nigeria is an OPEC member. U.S. efforts to impede Venezuelan oil shipments also persisted, with the U.S. Coast Guard forcing the sanctioned oil tanker Bella 1 to divert into the Atlantic Ocean this week.
According to the U.S. Energy Information Administration (EIA), U.S. crude oil inventories as of December 12 were down 4.0% from the seasonal five-year average, and crude oil production fell 0.1% week-on-week to 13.843 million barrels per day. Additionally, Baker Hughes reported an increase in U.S. active oil rigs, rising by three to 409 rigs, a slight recovery from a recent low.
