Iranian Forces Seize South Korean Tanker
January 4, 2021
Energy prices are trading a bit higher this morning. OPEC+ is not expected to increase production in February by 500,000 bpd. The market has pretty well accepted this as fact. OPEC+ appears to be practicing some restraint considering the possibility of more COVID lockdowns. The OPEC Secretary General, Mohammad Barkindo, has warned about the downside risks for oil in the first half of 2021. It appears OPEC+ members may heed his warning in their meeting today. OPEC+ did start to increase production on January 1. While near-term 2021 energy prices could face some downside, supplies may tighten in the back half of the year. This could spur more traders to take positions as we start the new year.
Oil rigs are up 3 to a total of 267 crude oil rigs. Last year at this time, there were 670 rigs.
Bloomberg reports Iran’s Revolutionary Guards Corps has seized a South Korean flagged tanker in Persian Gulf waters.
Read more commentary from MFA Oil for news about energy prices and markets.