Americas Daily Oil Summary: SocGen Sees Slower US Shale Growth

US oil production in 2024 is likely to rise at less than half the rate in 2023 as the shale industry matures and most of the growth is already priced in, according to SocGen, cited by Bloomberg.

• Around half of the 50 tankers that the US Treasury has been sanctioning since 10 October have failed to load cargoes, Bloomberg ship tracking data showed.
• An explosion at Pemex’ 215kbpd Miguel Hidalgo refinery, or Tula, on Monday afternoon local time injured eight workers according to Radio Formula.
• While crude production from Mexico’s Pemex fell in 2023, it still boosted crude exports with the debut of its mixed Zapoteco grade and the relaunch of Olmeca crude, Argus said.
• Colombia’s Oil and Gas Association (ACP) expects the country’s oil output to hit 0.8m b/d in 2024.
• USD: Hotter-than-expected US inflation data prompted a surge higher for the greenback on Tuesday. As Fed rate cut expectations continue to be pushed back, the USD index remains at the best levels of the session, having risen 0.67% to a fresh near-three month high.
• US JAN. CONSUMER PRICES INCREASE 0.3% M/M; EST. 0.2%. Core CPI: 0.392% M/M in Jan (BBG median 0.3, av 0.28)
• Core CPI upside comes despite used cars dragging more than most expected. Services print the highest M/M rate since Sep’22, with strength seen in heavily weighted OER and particularly in the aforementioned supercore.