Crude Markets Extend Gains from Yesterday

Brent crude front month resumes the move higher from yesterday supported by the Houthi attacks in the Red Sea yesterday and the slightly lower US production forecast for 2024 by the EIA.

• Upside is limited by optimism for progress in Israel-Hamas ceasefire talks. Reuters claims to have seen a draft of the counterproposal from Hamas regarding a ceasefire. The group's plan would see the fighting halted for 135 days in three 45-day phases to allow for the return of all Israeli hostages in return for the release of Palestinian prisoners.
• The Jun24-Dec24 time spreads are following the front month move higher but the prompt spread are more muted with the WTI spread still in contango.
• Technicals suggest Brent futures remain in a bear-mode condition following the reversal last week. Support is at the Jan 17 low of $76.13/bbl and resistance at the Feb 1 high of $81.55/bbl.
  • Brent APR 24 up 0.6% at 79.07$/bbl
  • WTI MAR 24 up 0.7% at 73.8$/bbl
  • WTI-Brent down -0.03$/bbl at -5.23$/bbl
  • Brent APR 24-MAY 24 up 0.02$/bbl at 0.34$/bbl
  • Brent JUN 24-DEC 24 up 0.13$/bbl at 2.36$/bbl
  • WTI MAR 24-APR 24 up 0.02$/bbl at -0.04$/bbl
  • WTI JUN 24-DEC 24 up 0.15$/bbl at 2.23$/bbl