Brent Crude Extends Gains Through $80/bbl

Crude has risen above $80/bbl for the first time since Dec 27 amid escalation risks and supply concerns following the US and UK strikes on Houthi rebel targets in Yemen.

• Houthi rebels vowed to continue to attack ships "on their way to Israel" despite strikes by the US and UK early Friday, Muhammad Abdel Salam, a senior spokesman for Yemen's Houthis. All US and UK interests are now legitimate targets according to Houthi supreme ruling political council.
• The prompt crude spreads are following the front month future gains with the Brent spread above the highs of yesterday and the highest since early November at 0.44$/bbl with the WTI spread near parity.
• Crude volatility has risen due to the escalation risks with Brent second month ATM implied vol up to 33.3% and WTI up to 35.9%.

• Key Brent technical resistance is at the Dec 26 high of 81.45$/bbl with next WTI resistance at 76.18$/bbl after trading through the 50 day EMA of 74.51$/bbl.
• Brent MAR 24 up 3.6% at 80.22$/bbl
• WTI FEB 24 up 3.8% at 74.78$/bbl
• WTI-Brent down -0.09$/bbl at -5.42$/bbl
• Brent MAR 24-APR 24 up 0.14$/bbl at 0.44$/bbl
• Brent JUN 24-DEC 24 up 0.3$/bbl at 2$/bbl
• WTI FEB 24-MAR 24 up 0.05$/bbl at -0.02$/bbl
• WTI JUN 24-DEC 24 up 0.32$/bbl at 2.06$/bbl