Oil End of Day Summary: Crude Set for Gains

Crude markets are heading for US close trading higher, although have eased back slightly amid more positive noises from Qatar regarding Hamas view on a ceasefire proposal. Nevertheless, support continues to come from further Red Sea attacks.

• WTI MAR 24 up 0.4% at 73.06$/bbl
• The number of oil tankers diverting around the cape of Good Hope continues to rise amid ongoing Houthi rebel attacks in the Red Sea, Oil Brokerage said.
• Total global oil production is expected to grow by 0.6m b/d in 2024 slowing from an increase of 1.8m b/d in 2023, according to the EIA’s Short Term Energy Outlook in Feb.
• Saudi Arabia needs oil prices to average at least $90/bbl for it to balance its 2024 budget, according to Fitch Ratings, boosting the chance that its output cuts will be extended into Q2.
• Brazil’s Petrobras intends to expand its refining capacity by 25% over the next four years.
• Russia’s crude oil exports from its western ports in February have been revised up from amid an outage at the Tuapse refinery, according to Reuters.
• China’s crude imports-maintained momentum in January at 11.31mn bpd, down slightly from 11.44mn bpd in December according to LSEG figures.
• Libya plans to export 31.3m bbl, equivalent to 1.08m b/d, of crude in Feb, according to the loading programme seen by Bloomberg.
• Global crude oil demand will continue to rise into 2030 amid strong petchem and jet fuel demand, but the rate of increase has likely peaked, according to Bank of America.
• US crude oil stocks are expected to have built in the week to Feb. 2, according to a survey by the WSJ.