Mid-Day Oil Summary: Crude Rebounds

Crude is extending gains throughout the session, rebounding from yesterday’s decline, supported by reduced flows out of Libya and risks from Middle East tensions. The Brent crude prompt time spread has risen to the highest since mid-November amid today’s recovery in front month futures.

• Brent MAR 24 up 2.2% at 77.83$/bbl
• WTI FEB 24 up 2.3% at 72.41$/bbl
• Brent MAR 24-APR 24 up 0.08$/bbl at 0.29$/bbl
• Brent JUN 24-DEC 24 up 0.21$/bbl at 1.74$/bbl
• The EIA Short Term Energy Outlook is due for release at 10:00 ET (17:00 GMT) today. The API oil inventory data is due for release today at 16:30 ET.
• Tensions in the Middle East and a force majeure at Libya’s Sharara oilfield have provided some support with front month crude holding above the lows of the year from Jan 3.
• Oil supertanker rates to transport crude from the US Gulf to China have surged amid increased bookings by South Korean shipper Sinokor Merchant Marine Co. according to Bloomberg.
• Two Indian refiners are seeking to import more Saudi crude oil next month after Saudi Aramco cut the Arab Light OSP to Asia in February to the lowest level since November 2021, company sources told Reuters.
• Russia’s crude exports in early 2024 are inline with OPEC+ commitments according to Bloomberg vessel tracking.
• Russian Urals crude prices declined by 17% on the year to average $62.99/bbl last year, the Finance Ministry said. This is above the G7 price cap of $60/bbl.
• Guyana is in talks with five potential investors interested in building and operating the country’s first refinery according to its vice-president Bharrat Jagdeo.
• China crude production rose to 208mn metric tons or 4.16mn bpd in 2023 according to the state broadcaster CCTV on Tuesday.
• China’s refined oil exports fell 11.59% on the month to 2.06m mt in December, according to OilChem.
• Diesel cracks spreads are edging higher again today to extend gains this week with support from US refinery outages, with US CDU outages rising to the highest level since mid-November.
• The small CDU at TotalEnergies’ 238kbpd Port Arthur refinery in Texas is operating at a reduced level, as well as a FFC and VDU, people familiar with plant operations said.
• Motiva’s 626kbpd Port Arthur refinery shut the large CDU and coker on Monday as part of scheduled maintenance works, sources familiar with plant operations told Reuters.
  • US ULSD crack up 0.5$/bbl at 38.3$/bbl