Oil End of Day Summary: Crude Strengthens

Crude spiked to near its intraday high after the Fed’s decision to keep the federal funds rate unchanged led to a sharp fall in the USD. Crude markets are rising beyond earlier gains which followed a larger than expected draw in US crude inventories from the weekly EIA data.

• WTI JAN 24 up 1.5% at 69.62$/bbl
• The Federal reserve kept the Fed funds rate unchanged at 5.25%-5.5%, the highest rate since 2001. Fed officials expect to lower rates by 75 basis points next year, a sharper rate of cuts than implied in September’s projections.
• EIA Weekly US Petroleum Summary - w/w change week ending Dec 08: Crude stocks -4,258 vs Exp +20, Crude production 0, SPR stocks -6.
• Two missiles fired from Yemen’s Houthi rebel territory missed a tanker loaded with jet fuel near the Bab el-Mandeb Strait on Wednesday according to AP News reports citing US officials. The Marshall Islands-flagged tanker was traveling north toward the Suez Canal in the Red Sea.
• OPEC left oil demand growth expectations for this year and next unchanged while raising its 2023 global economic growth forecast in its latest monthly report.
• UBS has cut its 4Q23 and 2024 oil price forecasts to “to reflect looser market balances as US supply continues to surprise to the upside while we see the recently announced OPEC+ additional cuts as likely to be limited.”
• From January 2024, Petroecuador will free up 2,160,000 bbl of crude per month for spot sales, according to Petroenergia.
• MNI COMMODITY WEEKLY: Russia’s OPEC+ Compliance Under Scrutiny Amid Middle East Charm Offensive - Full piece here: https://enews.marketnews.com/ct/x/pjJscQWJl-QI6a9lckh0Hg~k1zZ8KXr-kA8x6nCW5asptIPjO1OcQ
• MNI COMMODITY ANALYSIS: End of Year China Weakness Weighs on Oil Complex https://enews.marketnews.com/ct/x/pjJscQWIwewI6a9lchF1SA~k1zZ8KXr-kA8x6nCWsCkptIPjO1OcQ