Oil Curve Firms Further, Dec-23 Futures Top $50/bbl

The crude futures curve firmed further Wednesday, with the all contracts out to Dec-2023 now north of $50/bbl for the first time since early 2020.

• The move higher in both WTI and Brent crude futures Wednesday comes despite the stall in equity momentum, with focus remaining on the inclement weather conditions in southern US states. Rolling blackouts are persisting across Texas, with areas of the state seen being effected for several more days due to production shutdowns, soaring energy demand and scarce supply.
• Near-term resistance for WTI crude futures crosses at $60.95 for the front-month contract and $61.11 further out.
• Silver remains vulnerable following the sharp sell-off on Feb 2. Recent gains are considered a correction and a resumption of weakness is seen likely near-term. A move lower would refocus attention on $25.905, the Feb 4 low and clearance of this support would set the scene for a deeper pullback.