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Mid-Day Oil Summary: Crude Edges Higher

OIL

Crude is ticking higher again today after gains yesterday driven by the supply side with reduced flows from Libya, risks from Middle East tensions and Red Sea disruption as well as OPEC+ output cuts. Toay’s crude inventory data are expected to show a draw of -0.2mbbls for the week ending 5 Jan.

    • Brent MAR 24 up 0.3% at 77.85$/bbl
    • WTI FEB 24 up 0.4% at 72.55$/bbl
  • API weekly oil stock data: Crude -5.2mbbl, Cushing -0.625mbbl, Gasoline +4.9mbbl, Distillate +6.9mbbl
  • The EIA weekly petroleum inventory data is due for release this afternoon at 10:30 ET (15:30GMT).
  • Crude inventories in the ARA region fell by 779kbbl to 53.31mbbl in the week to January 5 according to the latest Genscape data.
  • Iran backed Houthi rebel attacks on commercial shipping continue despite the US led maritime force with one of the largest missiles and drones attacks to date in the Red Sea.
  • Vitol expects balanced oil markets in 2024 according to Vitol’s head of Asia Mike Muller.
  • Ecuador has sent military and police on Tuesday to stop criminal groups after several attacks, also protecting three refineries with a combined capacity of 175kbpd according to Argusmedia.
  • India has shelved plans to top up the nations SPR due to market volatility and potential further price declines.
  • Russian refined fuel exports rose to their highest since early April of last year on the latest four-week average basis.
  • Oil product stockpiles at the port of Fujairah declined by 5% on the week to 18.238mn barrels as of 8 January, down from a 12-week high the week prior, FOIZ data showed.
  • TotalEnergies reported the trip of a unit at the Gonfreville Normandy oil refinery on Jan 9 according to a community alert.
  • A rare US gasoline cargo was headed for Australia on Wednesday, amid lower prices due to a supply glut on the US Gulf Coast, LSEG data showed, marking the first gasoline cargo from the US to Australia in almost three years according Kpler.
  • Diesel crack continue to rise today after a rally this week with a build in API oil product stocks data last night weighed against rising US refinery outages and cold weather in US. Concern for possible Polar Vortex have fuelled a rally in Great Lakes gasoline and diesel prices yesterday according to Tom Kloza from OPIS. A possible 4mb/d of US refining capacity could be impacted by severe the cold front.
    • US gasoline crack up 1$/bbl at 16.12$/bbl
    • US ULSD crack up 1$/bbl at 39.9$/bbl

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