Oil Summary at European Close: Crude Climbs

Crude markets have found further support today, ticking up to new intraday highs despite US CPI data coming in higher than expected. Middle East tensions and subsequent supply impacts continue to support prompt markets. The crude time spreads have also rallied on the day after yesterday’s narrowing.

• Brent APR 24 up 0.8% at 82.68$/bbl
• WTI MAR 24 up 1.1% at 77.78$/bbl
• MNI: US JAN CPI 0.3%, CORE 0.4%; CPI Y/Y 3.1%, CORE Y/Y 3.9%
• OPEC maintained its oil demand growth forecast for 2024 and 2025 steady on the month according to the latest OPEC Monthly Oil Market Report.
• Global oil demand is expected to grow slower this year by 1.2-1.3mbpd this year, IEA Executive Director, Fatih Birol, said to Bloomberg.
• Saudi Arabia’s decision to postpone its oil capacity expansion should not be interpreted as an assessment that crude demand is falling, OPEC’s Secretary General said, cited by Reuters.
• Russia’s seaborne crude exports eased back from a seven-month high although remained above the 52-week average, according to Bloomberg.
• The cost of to import Russian crude oil to India fell to $77.82/bbl in December, below Iraqi and Saudi Arabian prices according to data from the Ministry of Commerce and Industry.
• Around half of the 50 tankers that the US Treasury has been sanctioning since 10 October have failed to load cargoes, Bloomberg ship tracking data showed.
• The number of tankers that have diverted around southern Africa continues to rise as shippers look to avoid the Red Sea, according to Oil Brokerage.
• Morgan Stanley has raised the Brent price forecast for 2024 and 2025 amid tighter than expected supplies after recent inventory declines.