OIL: Oil Rebounds on Supply Concerns and Better Risk Sentiment

Crude prices rebounded from a Brent front month low of $75.05/bbl yesterday amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya's Sharara oilfield to help offset the global demand concerns.

• Oil rose on news that an American base in Iraq had been attacked amid growing concerns that Iran is expected to retaliate for Israel’s killing of Hamas’ political leader in Tehran. The U.S. is urging countries to convey that "escalation is in no one's interest”, said a State Department spokesperson.
• Libya’s largest oil field, the 270kbpd Sharara, has halt production due to the continued conflict between the country’s two governments.
• Better than expected US data yesterday eased some of the concerns of a looming recession but demand growth in US and China continue to weigh on prices.
• US oil inventories will again be in focus with API data due today ahead of EIA data tomorrow after last week showing the fifth consecutive weekly drop in US crude inventories to the lowest since February.
• Gasoline cracks also rebounded yesterday amid indications of stronger US demand. GasBuddy models U.S. gasoline demand at the highest level of the year of 9.28mbpd in the latest weekly data.
  • Brent OCT 24 up 1.1% at 77.11$/bbl
  • WTI SEP 24 up 1.3% at 73.91$/bbl
  • Brent OCT 24-NOV 24 up 0.03$/bbl at 0.37$/bbl
  • Brent DEC 24-DEC 25 up 0.25$/bbl at 3.06$/bbl
  • US gasoline crack up 0.1$/bbl at 25.09$/bbl
  • US ULSD crack down 0.3$/bbl at 23.34$/bbl