Crude Steady As Waits For China & Gaza Outcomes

Oil prices have held onto Friday’s gains during APAC trading with little reaction to the widely expected extension of OPEC output cuts to the end of June. WTI has been oscillating around the $80 mark and is currently at $79.94 after a high of $80.37. Brent is 0.1% higher at $83.64/bbl after rising to $83.97. The USD index is down only moderately.

• OPEC will extend its 2mbd reductions to the end of June with Russia focusing on cutting production rather than exports. The action is aimed at supporting prices and avoiding excess supply. Higher prices are also needed by many producers to shore up government finances.
• Negotiations continue for a Gaza ceasefire deal before the start of Ramadan next week but the Israelis didn’t send a delegation to yesterday’s talks after Hamas would not name the remaining hostages. The stall in progress towards a truce is providing support to oil prices.
• China’s National People’s Congress is to close on March 11 and the 2024 growth target is to be announced plus any economic policies. Crude sell offs are often driven by market concerns re demand from China, the world’s largest importer.
• Later the Fed’s Harker speaks but there is no data of note.