Oil Summary at European Close: Crude Surges on Stock Draw

Crude markets have surged during European afternoon trading amid a larger than expected draw in US weekly crude inventories and a drop in US crude output.

• Brent MAR 24 up 1.2% at 80.47$/bbl
• WTI MAR 24 up 1.6% at 75.59$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jan 19, Crude stocks -9,233 vs Exp -908, Crude production -1,000, SPR stocks +920, Cushing stocks -2,008
• North Dakota oil production disruption drops further Wednesday to around 170-220kbpd according to the pipeline authority.
• ARA crude stocks fell 8.7mn bbls or 16% in the week ended January 19 to 45.5mn bbls according to Genscape.
• Nigeria’s crude loadings are set to climb 17% on the month to 1.3m b/d in March, according to Bloomberg based on the loading schedule for 12 key grades.
• Global oil demand growth is expected to almost halve in 2024 to 1.3%, slowing further to 0.9% in 2025, HSBC said in a note.
• Rising US production of light sweet crude was likely destined to be the most competitive grade in Europe, Gunvor’s general manager David Garza told Argus.
• Oil prices are expected to remain in a narrow range with the second half of 2024 in the $85/bbl to $95/bbl range according to global head of research and analysis at Gunvor.
• Steady demand growth could lead a tight market this year and push oil prices higher, according to Claudio Galimberti at Rystad Energy in a Bloomberg interview.
• The start-up of the Trans Mountain Pipeline’s twin line will likely spur the growth of Canadian oil production, according to Jerry Sinclair, Senior VP of Commercial at US refiner HF Sinclair cited by Bloomberg.