Mid-Day Oil Summary: Crude Ticks Up

Crude is trading higher today after yesterday’s sharp fall and is within the 77.1$/bbl to 77.93$/bbl range. Easing shipping concerns in the Red Sea have cut the geopolitical risk premium despite ongoing risks from Middle East tensions. A larger than expected draw in US crude inventories in the weekly EIA data released yesterday failed to boost oil prices.

• Brent MAR 24 up 0.4% at 77.43$/bbl
• WTI FEB 24 up 0.2% at 71.9$/bbl
• The US military is trying to reassure shipping companies that the task force to protect the Red Sea route is making it safe to transit despite the threat of Houthi rebel attacks.
• The latest Baker Hughes rig count data is due for release at 13:00ET.
• Saudi Aramco could cut the Arab Light official selling price to Asia by 1.25$/bbl in February according to the median estimate of a Bloomberg survey of three refiners.
• China has released the first batch of fuel export quotas for 2024 almost unchanged from the first allocation issued in 2023 according to industry consultant JLC.
• India’s crude oil imports in November fell by 2.3% year on year to 18.57m tons compared to 18.73m tons in October, according to provisional data from the oil ministry’s Petroleum Planning & Analysis Cell.
• International oil prices are likely to remain near $80/b in 2024, according to a Reuters poll.
• BRENT CRUDE TO HOVER AROUND $80/BBL IN 1Q: ENERGY ASPECTS - bbg