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Benchmarks Edge Higher, Fresh Attacks In The Red Sea

OIL

Oil benchmarks have tracked tight ranges in the first part of Wednesday trade. Brent sits near $77.80/bbl in latest dealings, marginally above Tuesday end levels. WTI was last at $72.50/bbl. Both front end benchmarks saw +2% gains for Tuesday's session.

  • Headlines crossed earlier of a Houthi attack, reportedly the largest to date in terms of cruise missiles, drones etc, in the Red Sea on commercial shipping.
  • Whilst the US military stated there were no damages from the attack, it does underscore risks around the supply route.
  • This news, coupled with API data suggesting lower US oil inventories last week (per BBG), has seen supply side dynamics play a role in oils recent rebound.
  • Elsewhere, on Tuesday it was announced global consumption of liquid fuels is expected to be 102.46m b/d in 2024, according to the EIA’s January Short-Term Energy Outlook. This is revised up from 102.34m b/d in December’s report.

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