Oil End of Day Summary: Crude Nears 6-Month Low

Crude prices are heading for their lowest levels since late June, amid signs of further bolstered US production, continued scepticism towards OPEC+ output cuts, and a continued weak economic outlook. US Core CPI came in very much as expected in November at 0.285% M/M but Supercore (core services ex OER & rents) was slightly on the higher side at 0.44% M/M.

• WTI JAN 24 down -4.3% at 68.27$/bbl
• The EIA Short Term Energy Outlook has revised its estimate for global oil supply in 2024 to 102.19m b/d, down from 102.55m b/d in November’s report.
• A biofuel tanker was struck by a missile in the Red Sea Monday, launched from Houthi controlled territory in Yemen. The tanker was bound for Italy.
• Chevron has increased its crude production Venezuela to 150kbpd, from 50kbpd prior to the US sanction relief in October.
• Russian weekly seaborne crude exports rose by 144kbpd to 3.2mbpd in the week to 10 December, Bloomberg ship-tracking data showed, driven by a big jump in weekly flows after storms disrupted Black Sea shipments.
• Transneft has constructed two new oil tanks of 50 mcm for the East Siberia – Pacific Ocean (ESPO) oil pipeline, according to TASS.
• CPC Blend crude loadings are expected to be 1.3-1.4mbpd in January from the terminal near Novorossiysk in the Black Sea, said traders with knowledge of the loading schedule.
• Oil demand growth is forecast to fall to 1.2mb/d in 2024 from 2.4mb/d in 2023 amid macroeconomic concern according to Macquarie.
• The global oil and gas sector outlook is neutral in 2024 amid stable performance, aided by high prices and fairly strong earnings, Fitch Ratings says in a new report, reported by Bloomberg.