Crude Tentatively Rises After Sinking On Gaza Ceasefire Reports

Oil prices are moderately higher during APAC trading today after falling over 2% on Thursday. The greenback is slightly lower and risk sentiment has improved but the focus is on US payrolls due later and any developments in the Middle East. Brent is up 0.7% to $79.25/bbl but off the intraday high of $79.44. WTI is 0.7% higher at $74.30/bbl off the $74.47 high but is currently down 4.8% on the week.

• Oil fell sharply on Thursday following mixed reports that progress is being made on a ceasefire deal between Israel and Hamas brokered by the US, Qatar and Egypt. The market remains on edge re any further Houthi strikes on Red Sea shipping and how the US will respond to an attack on its troops which killed three. CBS News reported that there will be a number of strikes against Iranian facilities in Syria and Iraq.
• OPEC+ met yesterday and said that it will decide in early March whether to extend its production cuts into Q2. According to Bloomberg output was reduced 490kbd in January. Non-OPEC supply remains robust keeping a lid on price rises from geopolitical incidents.
• The focus later will be on the January US non-farm payrolls which are expected to post a 185k increase with the unemployment rate rising 0.1pp to 3.8%. There are also final readings for Uni of Michigan consumer sentiment and durable goods orders. The BoE’s Pill and ECB’s Centeno speak.