Oil Extends Gains Thursday Stoked by Fed Sentiment and US Stock Draws

Oil is rising on Thursday, building upon Wednesday’s gains as prices build some resistance from the recent overall sharp sell-off. Crude gains on US stockpile draws, Red Sea vessel attacks and signals of Fed cuts in 2024. Crude markets had hit the lowest levels since late June earlier this week.

• Brent FEB 24 up 0.6% at 74.74$/bbl
• WTI JAN 24 up 0.5% at 69.84$/bbl
• Gasoil JAN 24 up 1.5% at 743.25$/mt
• WTI-Brent down -0.08$/bbl at -4.62$/bbl
• Further attacks on vessels within the Red Sea Wednesday stoked fears surrounding oil and oil product supplies. The latest vessel was carrying jet fuel was not connected with Israel. Houthi rebels have referred to vessels bound for the country as a “legitimate target”.
• Crude oil moves made gains ahead of the Fed meeting as EIA figures showed a bigger than expected 4.3mn bbls crude stockpile draw or the week ended December 8.
• Brent FEB 24-MAR 24 up 0.02$/bbl at -0.23$/bbl
• Fed signals of rate cuts in 2024 also spurred oil markets over a weaker dollar and hopes of cheaper borrowing and higher economic activity.
• OPEC referred to "exaggerated concerns" about global oil demand in its latest monthly report but its release this week did little to move markets.
• Brent futures have dropped around 10% since the recent OPEC+ meeting over fears around compliance, fractures in the group and strong non-OPEC supply from places like the US, Guyana, Canada and Brazil.
• US gasoline stocks only rose marginally in the latest IEA report, helped by strong exports but PADD 1 saw a large build which could loosen CME RBOB.
• US gasoline crack up 0$/bbl at 15.82$/bbl
• US ULSD crack up 0.1$/bbl at 38$/bbl