January 2023 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil inched up, by $1.64 (+2.1%) to $78.08 per barrel in January. That increase occurred within the context of a noticeably weaker U.S. dollar (broad trade-weighted index basis -- goods and services), the lagged impacts of November’s increase of 178,000 barrels-per-day (BPD) in the amount of petroleum products demanded/supplied (to 20.6 million BPD), and accumulated oil stocks that launched into the middle of the five-year average range (January 2023 average: 447 million barrels). 

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Selected highlights from the 31 January 2023 issue of OilPrice.com‘s Intelligence Report include:

“While interest rates and Chinese demand are still big on the oil agenda, bumper profits reported by oil majors across the spectrum have been causing ripples in the markets, especially after Exxon reported a whopping $56 billion profit for the entire year of 2022,” wrote editor Josh Owen. “U.S. refiners such as Marathon and Philips66 both saw their profits rise by 50-60% compared to last year, and back then we thought 2021 was as profitable as good years can get.”

White House Does It Again. Just as oil firms started reporting their Q4 earnings, the Biden administration launched another tirade against U.S. oil companies, accusing them of “plowing windfall profits into the pockets of executives and shareholders” instead of increasing production. 

New Bill Limits Rights to Tap into SPR. The House of Representatives passed a bill that limits the ability of the US energy secretary to use the country's strategic oil reserve without increasing the amount of public lands available for oil drilling, however President Biden vowed to veto it

Oil is Back in Vogue Again. Portfolio investors and money managers have purchased the equivalent of 70 million barrels in key oil futures and options contracts, marking the second straight week with a huge influx of interest, with the ICE Brent contract seeing most of the increases (+40 million bbls last week). 

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.