Crude Higher As Commodities Rally On China Optimism

Oil prices are moderately higher today during APAC trading after falling over a percent on Tuesday as commodities have benefited from stronger HK/China equities and a weaker greenback (USD index -0.1%). Geopolitical issues also persist. WTI is up 0.3% to $77.28/bbl and Brent +0.3% to $82.62, both close to their intraday highs.

• Higher oil prices and shipping costs from conflict in the Middle East and attacks on shipping in the Red Sea have resulted in an increase in petrol prices with the UK’s RAC reporting fuel prices rising by at least 2% in the first half of February. Australian petrol prices are almost 4% higher since the end of January.
• There were reports today from the UK navy of increased drone activity just north of the Bab al-Mandab Strait.
• The bullish Brent prompt spread has expanded, according to Bloomberg.
• US inventory data has been volatile since a cold snap disrupted oil output and refining. Data for the latest week is released by API later today.
• Later the Fed’s Bostic, Collins and Barkin speak plus the January Fed meeting minutes are published, which oil markets will monitor closely for signs of a willingness to ease. The ECB’s Tuominen and Fernandez-Bollo, Bundesbank’s Nagel and BoE’s Dhingra make appearances.