Crude Volatile on Hostage Release Report

WTI has plunged from $89.9/b in US hours, erasing its gains earlier in the day, although has since seen a partial rebound. The fall followed reports that Hamas has released some hostages following mediation with Qatar.

• WTI NOV 23 down -0.1% at 89.31$/bbl
• WTI NOV 23-DEC 23 down -0.1$/bbl at 0.9$/bbl
• The hostage release could offer some hope that the ongoing conflict in the Middle East could be contained.
• Bloomberg also reported that the US is pressuring Israel to delay its invasion of Gaza to give time for hostage negotiations via Qatar.
• However, the uncertainty around the conflict continues to give a geopolitical risk premium, as the market remains volatile to ongoing events in the region.
• Elsewhere, a relaxation of sanctions on Venezuela is also likely to add downside, although the possible 200k b/d that could be added to the market are unlikely to arrive in the near term due to Venezuela’s current infrastructure issues.
• US total rig count increased by 2 on the week to 624, according to Baker Hughes