Oil Summary at European Close: Crude Rebounds

Crude has rebounded from the earlier lows of $82.11/b to be trading higher. Ongoing Middle Eastern tensions and Red Sea attacks continue to add to supply concerns, while risks to demand growth and high US output are limiting upside.

• Brent APR 24 up 0.8% at 83.2$/bbl
• WTI APR 24 up 1% at 78.39$/bbl
• Shipping giant Maersk has warned that ongoing disruptions to flows through the Red Sea could drag into H2 2024, causing heavy congestion and delays for US bound goods, according to Reuters.
• Brent crude prices are expected to average $80/bbl in 2024 and 2025 with a balanced market according to BofA.
• Oil markets remain rangebound this year despite Middle East risks and Red Sea shipping attacks because of limited impact on supplies so far according to RBC Capital’s Head of Commodity Strategy Helima Croft in an interview with CNBC.
• OPEC+ is expected to announce in early March the rollover of the voluntary production cuts through June at least, RBC head of commodity strategy, Helima Croft, said in a note.
• The US has capitalised on shipping disruptions in the Red Sea to become the biggest supplier of crude, diesel and LNG for Europe in recent months according to Kpler.
• Russia’s oil-pipeline operator Transneft plans to expand oil reservoir tank capacity in Kozmino according to Bloomberg based on a government decree published on a legal database.
• Libya is producing 1.25mn bpd of crude at present according to the National Oil Company Chairman Farhat Bengdara at IE week.