Oil Summary at European Close: Crude Extends Gains

Crude is extending gains with WTI briefly rising through the first resistance of $71.96/b. Prices are supported by vessel fears as a further ship faces an attempted rocket attack from Houthi controlled territory, while a lower US Dollar is adding further upside.

• Brent FEB 24 up 3.5% at 76.85$/bbl
• WTI JAN 24 up 3.5% at 71.93$/bbl
• Global oil demand growth forecast for 2024 has been revised up by 130kbpd to 1.1mbpd, while expectations for this year’s demand growth have been lowered as the weakening economic climate is slowing down oil demand growth, according to the IEA Monthly Oil Market Report.
• The Presidents of Venezuela and Guyana are set to meet Thursday in a diplomatic attempt to ease tensions over the latest border dispute escalation.
• Liberty, the dark-fleet oil tanker that ran aground off Indonesia around 11 days ago has been freed after releasing its cargo to another tanker to reduce it draft.
• Brazilian October oil production was at 3.536mbpd according to ANP figures, -3.5% m/m, +9.2% y/y.
• India’s imports of Russian oil rose to a four-month high of 1.6mbpd in November, up by 3.1% month on month.
• Geopolitics are at a crucial inflection point for oil prices according to BofA’s Head of Global Commodities in a CNBC interview.
• Maersk Tankers is to insist its fuel tanker fleet have the option to avoid the Red Sea following a spate of attacks from Houthi controlled areas this week.
• South Korea’s share of OPEC crude has fallen significantly compared to recent months according to Vortexa.