Largely Holding Thursday's Gains, Firmer For The Week

Oil benchmarks have largely drifted sideways in the first part of Friday trade. The front month Brent contract sits at $82.75/bbl in recent dealings, down slightly from end Thursday levels. We are marginally higher versus end levels from last week ($82.19/bbl). For WTI we are holding above $78/bbl, with a firmer rise in the past week compared to Brent (+1.6%). Dips sub $78/bbl have been supported so far today.

• The benchmarks are largely holding impressive gains from Thursday's session, although we haven't seen a test of Thursday highs.
• This may reflect broader risk trends, which are positive in the equity space, but the USD has edged higher, providing an offset.
• While risk tones are positive, Thursday's IEA report suggested some caution around the demand/supply balance in 2024.
• Focus will remain on the Middle East where the Houthi's vowed to continue attacks on Red Sea shipping.
• US President Biden spoke to Israeli leader Netanyhu and again urged restraint around a potential assault on the southern Gaza city of Rafah.