(+) US Oil Weekly Update: Strong Trend with Sanction Jitters

In the aftermath of the Energy Information Administration data Wednesday, that showed significant builds in US inventories of refined products, oil futures slid.

West Texas Intermediate for February loading on shaving of 93 closing at $73.32. February contracts for gasoline and heating oil dropped by 1.64 and 1.56 to end the session at $2.0102 and $ 2.3507/gallon. Heat oil contracts- a proxy for diesel. Amidst the builds in products, US crude inventories fell by 1 million barrels with Cushing Oklahoma drawing 2.5 million barrels to hit their lowest levels in a decade with 20 million barrels in storage. Cushing Oklahoma is the main delivery point for physical exchange and price settlement for West Texas Intermediate.

The inauguration of President-elected Donald Trump is around the corner and threats of tariffs and sanctions against major oil producers has the market on edge. Trumps rhetoric against foreign adversaries means sanctions will be a key factor for markets in 2025.