Oil Summary at European Close: Crude Extends Fall

Crude has extended the earlier decline as the bearish trend continues after US Core CPI came in very much as expected in November at 0.285% M/M but Supercore (core services ex OER & rents) was slightly on the higher side at 0.44% M/M.

• Brent FEB 24 down -3.4% at 73.46$/bbl
• WTI JAN 24 down -3.5% at 68.81$/bbl
• Calendar: The EIA Short Term Energy Outlook is due for release at 10:00 ET (17:00 GMT) today.
• A biofuel tanker was struck by a missile in the Red Sea Monday, launched from Houthi controlled territory in Yemen. The tanker was bound for Italy.
• Chevron has increased its crude production Venezuela to 150kbpd, from 50kbpd prior to the US sanction relief in October.
• Russian weekly seaborne crude exports rose by 144kbpd to 3.2mbpd in the week to 10 December, Bloomberg ship-tracking data showed, driven by a big jump in weekly flows after storms disrupted Black Sea shipments.
• Russian crude feedstock supplies to Finland's Neste and Poland's Orlen have fallen from over 50% in 2022 to nearly zero in 2023 with supplies diversified to seaborne deliveries according to Bloomberg.
• Transneft has constructed two new oil tanks of 50 mcm for the East Siberia – Pacific Ocean (ESPO) oil pipeline, according to TASS.
• CPC Blend crude loadings are expected to be 1.3-1.4mbpd in January from the terminal near Novorossiysk in the Black Sea, said traders with knowledge of the loading schedule.
• Oil demand growth is forecast to fall to 1.2mb/d in 2024 from 2.4mb/d in 2023 amid macroeconomic concern according to Macquarie.