Oil Summary at European Close: Crude Rises

Crude is continuing to trade higher on the day, regaining some of the losses following yesterday’s sharp fall. Middle East shipping continues to be a concern for the market, despite some easing of tensions. Yesterday showed a larger than expected draw in US crude inventories in the weekly EIA data.

• Brent MAR 24 up 0.6% at 77.6$/bbl
• WTI FEB 24 up 0.5% at 72.16$/bbl
• The US military is trying to reassure shipping companies that the task force to protect the Red Sea route is making it safe to transit despite the threat of Houthi rebel attacks.
• The latest Baker Hughes rig count data is due for release at 13:00ET.
• US crude production dipped down to 13.248mbpd in October from the record high of 13.252mbpd in September according to the updated EIA monthly production data.
• Saudi Aramco could cut the Arab Light official selling price to Asia by 1.25$/bbl in February according to the median estimate of a Bloomberg survey of three refiners.
• China has released the first batch of fuel export quotas for 2024 almost unchanged from the first allocation issued in 2023 according to industry consultant JLC.
• India’s crude oil imports in November fell by 2.3% year on year to 18.57m tons compared to 18.73m tons in October, according to provisional data from the oil ministry’s Petroleum Planning & Analysis Cell.
• International oil prices are likely to remain near $80/b in 2024, according to a Reuters poll.
• Energy Aspects expects Brent crude to hold near $80/bbl during Q1 2024 before rising to $85$/bbl or higher during Q2 according to Amrita Sen in a Bloomberg interview.