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Crude Little Changed, As Supply Concerns Offset Risks

OIL

MNI (Australia) - Oil prices are little changed during APAC trading today thus holding onto Wednesday’s losses. Brent remains below $80 at $79.75/bbl and WTI is just above $74. The weaker dollar (USD index -0.2%) and risks to shipping in the Red Sea are supporting prices but higher US inventories are weighing on them given the market remains concerned about excess supply.

  • WTI’s 50-day average is hovering around the 200-day, which if they cross will be seen as bearish. WTI is down 2.6% this month and Brent -1.4%.
  • Sinopec expects China’s product demand growth to ease to 1.7% in 2024 from 16.1% in 2023, which had been boosted by post-Covid demand, according to Bloomberg. Gasoline is forecast at 1.6% compared with 23% and diesel flat vs 3.1%. Demand for refining should increase 3% after 10% this year. The peak in crude demand is forecast for 2027.
  • Bloomberg reported a US crude inventory build of 1.84mn barrels in the latest week after almost a million the week before, according to people familiar with the API data. Gasoline stocks fell 482k but distillate rose 272k. The official EIA data is out today.
  • Later US November trade data and weekly jobless claims print.

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