Oil prices were slightly lower today as headwinds continued to counterbalance wider expectations of an extension of output cuts. However, the end of a warm winter across the northern hemisphere is weighing on oil prices despite the OPEC+ announcement. U.S. product supplies of distillate fuel oil, which includes heating oil, declined in December to 3.61 million barrels per day (bpd), down about 10% from November and the lowest since June 2020, data from the Energy Information Administration showed last week. While there has been little price movement because the OPEC+ decision had been expected, low-sulfur (sweet) crude markets are tightening, widening Brent spreads, traders said. The premium of the first-month Brent crude contract to the six-month contract reached $4.56 a barrel. This structure, called backwardation, indicates a perception of tight prompt supply. WTI traded down $1.24 or -1.5% to close at $78.74. Brent traded down $.75 to close at $82.80.