Crude Little Changed Ahead of Fed Minutes & ISM

After sliding around 1.5% on Tuesday, oil prices are little changed during APAC trading and have been range trading. Weak risk appetite and continued excess supply worries are outweighing persistent risks to shipping in the Red Sea. The USD index is down slightly after rising sharply yesterday.

• WTI is moderately lower at $70.35/bbl after a high of $70.70 earlier. Brent has been trading sideways for much of the session and is currently around $75.86.
• Given the market’s focus on supply, US inventory data is released by the API today and the EIA on Thursday.
• On the demand front, China has front-loaded the allocation of oil import quotas for 2024. The market will monitor trade data closely to see if the move boosts demand from refiners.
• There have been further reports today of missiles being fired in the southern part of the Red Sea but no damage has been related.
• Later the Fed’s Barkin speaks on the economic outlook and the December 13 meeting minutes are published. December US ISM data and November JOLTS job openings are also released. These events could all potentially be important in shaping the Fed outlook but the focus of the week is likely to be Friday’s December payroll data.