Largely Holding Week To Date Gains

Brent crude has drifted a touch lower in the first part of Wednesday trade, but overall ranges have been tight. We last sat near $79.10/bbl, a touch below recent highs ($79.65-70/bbl). This follows cumulative gains of nearly 3.50% through Mon-Tues trade this week. WTI was last near $73.45/bbl, having followed a similar trajectory to Brent for the session.

• Reuters headlines crossed earlier, stating that US crude oil and fuel inventories reportedly rose last week according to sources. This comes ahead of the EIA data later today in the US.
• It would also fit with various time spreads, which continue to show a reasonable supply backdrop for Brent and WTI into the first part of 2024.
• The Red Sea situation remains the other focus point. The US and allies are reportedly considering military strikes on Houthi militants based in Yemen. The Houthis warned the US they will be legitimate targets if they interfere in its ongoing operations against Israel-linked vessels.
• A new OPEC+ meeting is possible in the near future for the group to discuss the market situation but currently there is no need for new decisions, Russia Dep. PM Novak said, cited by Interfax.