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Crude Holds Near Highs After Rally in Prompt Spreads

OIL

Crude markets are steady after support yesterday despite US CPI data coming in higher than expected resulting in a stronger US dollar with a push back in Fed rate cut expectations. Middle East tensions and little hope for a ceasefire in Gaza and subsequent supply impacts continue to offset global demand concern.

    • Brent APR 24 up 0.1% at 82.86$/bbl
    • WTI MAR 24 up 0.1% at 77.96$/bbl
    • Gasoil MAR 24 down -0.2% at 872.75$/mt
    • WTI-Brent down -0.09$/bbl at -5.25$/bbl
  • OPEC maintained its oil demand growth forecast for 2024 and 2025 steady on the month according to the latest OPEC Monthly Oil Market Report. OPEC January crude oil production declined by 350kbpd on the month to 26.432mbpd according to secondary sources with only partial compliance with the new quotas.
  • API data yesterday showed a higher-than-expected crude inventory build as volatility in the data continues following the disruption to production and refining due to the severe cold in mid Jan.
    • Brent APR 24-MAY 24 unchanged at 0.7$/bbl
    • Brent JUN 24-DEC 24 down -0.03$/bbl at 2.87$/bbl
  • The WTI prompt time spread yesterday surged to the highest since early November with Jun24-Dec24 trading just below the highs from late Jan.
  • Gasoline cracks continued to rally yesterday while diesel cracks pulled back but remain up on the month ahead of the update EIA US petroleum inventory data later today. API data last night showed large draws in both products.
    • US gasoline crack up 0$/bbl at 22.97$/bbl
    • US ULSD crack down -0.2$/bbl at 43.84$/bbl

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