Oil Summary at European Close: Crude Supported by Red Sea Attacks

Crude markets have found support during the day, as further Houthi rebel attacks on vessels in the Red Sea counter more hawkish talk regarding US rate cuts.

• Brent APR 24 up 0.7% at 78.52$/bbl
• WTI MAR 24 up 0.6% at 73.25$/bbl
• Yemen’s Houthi rebels claimed two separate vessel attacks Tuesday as they targeted US and British vessels. One of the attacks has been confirmed by security firm Ambrey.
• The number of oil tankers diverting around the cape of Good Hope continues to rise amid ongoing Houthi rebel attacks in the Red Sea, Oil Brokerage said.
• Saudi Arabia needs oil prices to average at least $90/bbl for it to balance its 2024 budget, according to Fitch Ratings, boosting the chance that its output cuts will be extended into Q2.
• Brazil’s Petrobras intends to expand its refining capacity by 25% over the next four years.
• Russia’s seaborne crude exports rebounded strongly following two weeks of disruptions, according to Bloomberg.
• Kazakhstan’s crude production edged up 0.5% in January m/m to 6.7 million metric tons according to Reuters sources.
• Kazakhstan almost doubled oil exports circumventing Russian ports in 2023 to 3.76m mt, or 74.6k b/d, according to Reuters.
• Kazakhstan has extended its deal for the transport 100k mt per month of oil to Germany by a further six months to June 2024, according to Interfax Kazakhstan.
• China’s crude imports-maintained momentum in January at 11.31mn bpd, down slightly from 11.44mn bpd in December according to LSEG figures.
• Libya plans to export 31.3m bbl, equivalent to 1.08m b/d, of crude in Feb, according to the loading programme seen by Bloomberg.