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Crude Dips with Stronger Dollar After US CPI Data

OIL

Crude dips in volatile trading in reaction to the updated US CPI data with a stronger USD and Fed swaps suggesting lower odds of March and May US rate cuts.

  • Front month crude earlier spiked but remains within yesterday’s range after the hijack by Iranian military on an oil tanker carrying Iraqi crude oil to Turkey.
  • CPI data for Dec'23: Unrounded % M/M (SA): Headline 0.303%; Core: 0.309% (from 0.285%), Unrounded % Y/Y (NSA): Headline 3.352%; Core: 3.93% (from 4.007%)
  • Near term crude spread continue to rally supported by supply risks from the Middle East tensions. The WTI-Brent spread is holding steady around -5.4$/bbl.
    • Brent MAR 24 up 1.6% at 78.01$/bbl
    • WTI FEB 24 up 1.6% at 72.52$/bbl
    • WTI-Brent down -0.06$/bbl at -5.43$/bbl
    • WTI FEB 24-MAR 24 up 0.01$/bbl at -0.06$/bbl
    • WTI JUN 24-DEC 24 up 0.14$/bbl at 1.78$/bbl

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