Crude Edges Towards Range High

Crude markets are again trading near the January range highs supported by ongoing Middle East tensions, a US crude inventory draw yesterday and potential additional China stimulus plans.

• Brent MAR 24 up 0.5% at 80.43$/bbl
• WTI MAR 24 up 0.6% at 75.52$/bbl
• Gasoil FEB 24 up 0.2% at 811.75$/mt
• WTI-Brent unchanged at -4.91$/bbl
• The Chinese central bank cut the reserve ratio to help reinforce support for the economy and raise hopes of more stimulus measures and economic recovery.
• The US military carried out more strikes in Yemen yesterday to intercept attacks on two container ships. Global oil supplies continue to flow with many tankers diverting on the longer route round Africa although causing some scheduling changes. Brent could rise to $90/bbl if Middle East disruption spreads amid escalation tensions according to a bullish scenario from Citigroup.
• EIA data showed crude inventories fell more than expected driven by a large drop in production and refinery utilisation due to the severe cold weather across the US last week.
  • Brent MAR 24-APR 24 up 0.01$/bbl at 0.42$/bbl
  • Brent JUN 24-DEC 24 up 0.03$/bbl at 2.15$/bbl
• Near term supply concerns are supporting the curve backwardation with prompt time spreads near recent highs and Dec24 spreads up to the December highs.
• Gasoline cracks spread held steady yesterday as diesel edge lower after EIA showed gasoline stocks built with a drop in both exports and demand. Distillates inventories fell as weekly implied demand edged higher but the four week average was still below the previous five year range.
  • US gasoline crack down 0$/bbl at 19.03$/bbl
  • US ULSD crack up 0.4$/bbl at 36.92$/bbl