Free Trial

Crude Moves Back into Positive Territory

OIL

In a volatile session, crude has returned to net gains on the day, having plummeted on more hawkish Fed indications for interest rates and headlines surrounding covid variants in China. Concern over maritime security in the Red Sea may be adding some support on the day.

  • Brent FEB 24 up 0.4% at 76.9$/bbl
  • WTI JAN 24 up 0.2% at 71.74$/bbl
  • Meanwhile, Maersk containers are the first major announcement of ships avoiding the Red Sea but no indications yet of energy trade impacted according to Kpler.
  • The following headline also signals further concern in the industry: *TANKER GIANT EURONAV INSISTS SHIPS HAVE OPTION TO AVOID RED SEA - BBG
  • Red Sea price premiums may have already priced in over recent days due to prior headlines after numerous attacks.
  • Crudes initial fall came when Fed Williams poured cold water on US rate cuts.
  • Further dips in crude appear to have triggered shortly after the following headline Friday: *CHINA DETECTS 7 PEOPLE INFECTED WITH NEW COVID VARIANT JN.1 – BBG.
  • However, the initial market concern over the variant has likely eased as “there is no evidence that JN.1 presents an increased risk to public health relative to other circulating variants,” according to the latest CDC update Dec. 8

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.