Good morning, this is the Oil Patch. We're your oil and gas sensei.

Here's what the Oilman has for you today:

• Drone Drama: Israel Suspected in Overnight Attack on Iranian Factory

• Will Petrobras' New Boss Sink or Swim?

• Russian Oil Rush: India Set to Soak Up Record Exports In 2023

• Oil Prices to Skyrocket? The Upcoming OPEC and Federal Reserve Meetings

• Tweet of the Day

Drone Drama: Israel Suspected in Overnight Attack on Iranian Factory

Israel is suspected to be behind an overnight drone attack on a military factory in Iran, with no casualties or serious damage reported. Iran claims the attack was meant to create insecurity and has vowed that it will not stop their nuclear activity.

Here's the Oilman's key takeaways:

• Iran claimed to have intercepted drones that struck a military industry target near the central city of Isfahan, and said there were no casualties or serious damage.

• Israel has long said it is willing to strike Iranian targets if diplomacy fails to curb Tehran's nuclear or missile programmes.

• Iran has acknowledged sending drones to Russia but says they were sent before Moscow's invasion of Ukraine last year.

It's also important to note:

• Tehran did not formally ascribe blame for the attack.

• Moscow denies its forces use Iranian drones in Ukraine.

The US and Israeli military have declined to comment and US officials have denied US involvement.

Petrobras' New Boss is a Former Senator: Will He Turn the Oil Giant's Ship Around or Sink it?

Petrobras shares fell early in the year when the state-owned behemoth was removed from a list of Brazilian state agencies to be privatized.

And now, the Board of Directors of state-owned giant Petrobras has appointed former Senator Jean Paul Terra Prates as the new CEO.

This lawyer and economist is a seasoned energy consultant-turned-politician with a Master's in Economics and Management of Oil, Gas, and blah, blah, blah the French Petroleum Institute and blah, blah, blah the University of Pennsylvania.

As Senator of the Republic for Rio Grande do Norte, he was a member of several committees, such as the Committee of Economic Affairs, the Committee of blah, blah, blah and authored important legal frameworks involving energy transition and sustainable practices.

Did you get sleepy reading those accomplishments? So did the Oilman.

Prates has been recognized as one of the three most influential people in the renewable energy sector in Brazil.

And one of the 50 most important personalities in the world energy sector by several energy magazines.

Despite all of Prates' laurels and recognition, Petrobras shares dropped with the news of Prates's appointment.

Prates is expected to bring a strategic shift to more renewable energy projects and renewed investments in refining.

It doesn't look like the free market is too excited about this news...

Russian Oil Rush: India Set to Soak Up Record Exports in 2023

Russia India is about to hit the jackpot in the crude oil game, folks!

That's right, according to experts, exports to India could reach a new high this year if everything stays favorable. But, it's not just India cashing in on this opportunity.

The upcoming EU embargo on seaborne diesel imports from Russia could also lead to a boost in crude exports to India.

That's right, Russia is taking the oil the West doesn't want and turning it into gold for resale back to the West.

Talk about a clever way to turn lemons into lemonade.

Saudi Arabia and Iraq may still be the top dogs in crude oil supplies to India, but Russia is quickly climbing the ranks, coming in at a solid third place.

“It’s bit of a circular trade going on as India takes Russian crude that Western buyers don’t want and refining it into products for resale to the West,” said Mukesh Sahdev, Rystad Energy’s SVP of downstream oil trading, in a piece for Bloomberg this past week.

It's a whole new oil order where optics are all that matters, folks.

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Oil Prices to Skyrocket? The Upcoming OPEC and Federal Reserve Meetings

Welcome to the thrilling world of oil prices, where the stakes are high and the action is hotter than a barrel of crude.

The market is on fire as economic growth in the US and China continues to soar, leaving traders on the edge of their seats.

Oil prices made a strong push forward last week, with U.S. West Texas Intermediate Crude rising 1.50% to $82.24 per barrel and Brent futures gaining 1.33% to $88.45 a barrel.

Don't get too comfortable, as OPEC+ virtual meeting on output and the FOMC decision could change everything.

The OPEC+ meeting is set for February 1st.

As demand for jet fuel and diesel remains steady, OPEC+ delegates will be reviewing production levels to ensure the market stays hot.

Meanwhile, the U.S. Federal Reserve will be deciding on a rate hike at their January 31st to February 1st meeting.

But it's not all smooth sailing for the oil market, as a 4.2 million barrel build in stocks at Cushing, the pricing hub for NYMEX oil futures, earlier this week is putting a damper on gains.

China's reopening and the normalization of the economy is still playing a major role in boosting the demand outlook and keeping the market moving forward:

• Critically ill COVID-19 cases in China down 72%

• Daily deaths among COVID-19 patients in hospitals dropped 79% from their peak

However, recent outages in U.S. refineries and high U.S. crude inventories could still impact prices.

It's a wild ride, but one thing is for sure, the oil market is never dull.

Stay tuned for more exciting updates on the exciting world of oil prices.

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