Oil End of Day Summary: Crude Makes Strong Gains

Crude prices are up strongly on the day, although have softened later in US hours having been up nearly 4%. A weaker US dollar, an upgraded demand outlook from the IEA, and geopolitical concerns over maritime security in the Red Sea are providing upside.

• WTI JAN 24 up 3.3% at 71.78$/bbl
• Global oil demand growth forecast for 2024 has been revised up by 130kbpd to 1.1mbpd, while expectations for this year’s demand growth have been lowered as the weakening economic climate is slowing down oil demand growth, according to the IEA Monthly Oil Market Report.
• The Presidents of Venezuela and Guyana are set to meet Thursday in a diplomatic attempt to ease tensions over the latest border dispute escalation.
• The US Special Envoy for Yemen, Time Lenderking, told Reuters that the government wanted the “broadest possible” maritime coalition to safeguard ships transiting through the Red Sea.
• Liberty, the dark-fleet oil tanker that ran aground off Indonesia around 11 days ago has been freed after releasing its cargo to another tanker to reduce it draft.
• Brazilian October oil production was at 3.536mbpd according to ANP figures, -3.5% m/m, +9.2% y/y.
• India’s imports of Russian oil rose to a four-month high of 1.6mbpd in November, up by 3.1% month on month.
• Geopolitics are at a crucial inflection point for oil prices according to BofA’s Head of Global Commodities in a CNBC interview.
• Maersk Tankers is to insist its fuel tanker fleet have the option to avoid the Red Sea following a spate of attacks from Houthi controlled areas this week.
• South Korea’s share of OPEC crude has fallen significantly compared to recent months according to Vortexa.