Crude Recovers Earlier Losses Despite Libya Resumption

Crude ticks higher supported by ongoing Houthi threats on vessels in the Red Sea, weakness out of Dakota production due to the slow recovery from cold weather disruption and an escalation in attacks on Russian oil infrastructure by Ukraine.

• Oil had faced downside pressure earlier due to Libyan production resuming but has since recovered earlier losses to trade back in positive territory on the day.
• Russia’s Novatek has suspended some operations at the Ust-Luga export terminal on the Baltic Sea, following a fire on 21 January according to S&P Commodity Insights that was suspected to be caused by drone attack, Ukrainian media said, cited by Reuters.
• Front month has seen no clear direction so far this year but the Brent futures technicals remains bearish. Brent resistance is up at the Jan 12 high of $80.75/bbl and support at the Jan 3 low of 74.79$/bbl.
• Prompt time spreads are also recovering earlier losses after seeing a strong rally so far this month.
  • Brent MAR 24 up 0% at 78.59$/bbl
  • WTI MAR 24 up 0.1% at 73.32$/bbl
  • WTI-Brent down -0.01$/bbl at -5.27$/bbl
  • Brent MAR 24-APR 24 down -0.06$/bbl at 0.42$/bbl
  • Brent JUN 24-DEC 24 down -0.06$/bbl at 1.96$/bbl
  • WTI MAR 24-APR 24 down -0.04$/bbl at 0.09$/bbl
  • WTI JUN 24-DEC 24 down -0.02$/bbl at 2.06$/bbl