Mid-Day Oil Summary: Crude on Track For Weekly Net Gain

Oil holds onto gains and is on track for the first weekly again in almost two months supported by the US Federal Reserve signalling US rate cuts next year, dollar weakness, persistent Red Sea shipping threats and larger than expected US oil stockpile draws.

• Brent FEB 24 up 0.4% at 76.91$/bbl
• WTI JAN 24 up 0.5% at 71.92$/bbl
• Shipping risks in the Red Sea are increasing with two attacks on Friday. A ballistic missile fired from rebel-held territory hit another container ship Friday in the Red Sea near the Bab el-Mandeb Strait according to AP News reports of a US defense official. A Liberia flagged container ship sustained an “aerial attack” as it sailed the Bab al-Mandab strait causing a fire on deck according to Ambrey Friday.
• Guyana and Venezuela agreed Thursday to not use force in a long-term dispute over oil rich Esequibo after a meeting of their presidents in Saint Vincent and the Grenadines.
• Venezuela’s national assembly approved a 15-year extension for a pair of joint ventures between state owned PDVSA and Chevron.
• Indian oil minister Hardeep Singh Puri reaffirmed his nations intent to buy Venezuelan oil Friday now that US sanctions have eased.
• Imports of petroleum products in November fell by 4.3% compared to the same period in 2022, according to the Ministry of Commerce and Industry.
• Trans Mountain Corp has asked the Canda Energy Regulator to reverse its pipeline variance request denial – warning it could lead to a two-year delay.
• Global oil demand in December is estimated at 102.2mbpd, with year-to-date oil demand tracking a 1.8mbpd growth, JP Morgan said in a note.
• Oil exports from the CPC terminal are set to decline to 5.4mn tons in January, down from 5.6mn tons the December plan, two industry sources told Reuters.
• China refinery throughput fell in November m/m as independent refiners cut rates against tight export quotas and weak margins.
• China’s refined oil export profits have moved into negative territory, according to OilChem, driven by declining Asian gasoline prices and rising US inventories.
• Valero’s St Charles refinery in Norco, Louisiana, plans a multi-unit turnaround in early February until early March according to Bloomberg sources.
  • US gasoline crack down -0.3$/bbl at 17.22$/bbl
  • US ULSD crack up 0.6$/bbl at 37.74$/bbl