Pushing Higher, Up Strongly For the Past Week

Oil prices have probed higher through the first part of Friday trade. Brent was last just above $80/bbl, comfortably above intra-session lows from Thursday (just under $78/bbl). Highs for the session rest at $80.30/bbl, while earlier in the week we got $80.60/bbl. At this stage, Brent is comfortably higher for the week, +4.6%. WTI is near $74.50/bbl in recent dealings, +4.4% firmer for the week.

• Focus for oil markets largely remains on developments in the Red Sea, where disruptions risk a key supply route.
• Tankers carrying crude oil and fuel entering the Bab al-Mandab strait fell to around 30 this week, down by over 40% from the daily average seen in the previous three weeks as more shipping companies pause routes in the Red Sea according to Bloomberg ship tracking.
• Working the other way is a potential more positive supply backdrop. Angola will exit OPEC, stated-owned Jornal de Angola reported. This is not expected to boost supply in the near term, but is symptomatic of tensions within the group.
• Elsewhere, US total oil and gas rig counts fell by 3 to 620, according to Baker Hughes Dec. 21.
• This has helped temper US supply optimism and has added positive sentiment in the space at the margin.