Crude Steadies After a $2/bbl Fall Yesterday Ahead of JMMC Meeting

Crude markets are steady with support from new property support measures in China which is considered a key driver of global oil demand growth. Brent fell $2/bbl yesterday driven by weak manufacturing activity in China, a US weekly crude inventory build and a stronger US dollar after the US Fed as expected kept rates on hold. Focus today is likely to turn to OPEC+ and any indications of future production policy in reaction to the JMMC meeting later today.

• Brent APR 24 up 0.1% at 80.61$/bbl
• WTI MAR 24 up 0.1% at 75.89$/bbl
• Gasoil FEB 24 down -0.2% at 853$/mt
• WTI-Brent up 1.04$/bbl at -4.86$/bbl
• The US Federal Reserve held interest rates steady for the fourth straight meeting, signalling openness to cutting, but was in no rush to ease.

• Markets are still waiting for the US response following the attack on its troops stationed in Jordan over the weekend. US President Biden said that he did not want a war with Iran and that he had decided how to respond without giving further details.
• OPEC+ appears to be making a slow start to its new output cuts, according to Kpler. OPEC pumped 26.33mbpd of crude oil this month, down by 410kbpd on the month, but 214kbpd above the group’s January target according to a Reuters survey.
• The EIA weekly petroleum data showed an unexpected build in US crude stocks driven by a slower than expected recover in refinery utilisation from the cold weather disruption in mid Jan.
  • Brent APR 24-MAY 24 down -0.01$/bbl at 0.27$/bbl
  • Brent JUN 24-DEC 24 down -0.02$/bbl at 2.43$/bbl
• Diesel cracks are finding some support this week amid tighter supply concern due to shipping delays from Red Sea tanker diversions. European imports of diesel are expected to decline well below 2023 levels in the first half of February with supply from India the lowest in two years.
  • US gasoline crack up 0.2$/bbl at 17.95$/bbl
  • US ULSD crack down -0.2$/bbl at 41.28$/bbl