Strong Gains On Thursday

Oil prices surged on Thursday. Brent crude ended near $81.65/bbl in terms of the front month benchmark. We post a +3.06% rise in Thursday trade, the fourth straight daily gain. WTI front month rose by a similar amount. The benchmark tracks near $76.40/bbl in early Friday trade.

• There were a number of factors which appeared to support sentiment through Thursday trade. Diminishing hope of any near-term ceasefire deal in Gaza and thus no end in sight for Middle East tensions was a clear positive prices.
• Israeli PM Netanyahu, appeared to pour cold water on a ceasefire, telling reporters that Israel, "will not suffice with less," than a decisive victory in their war against Hamas.
• Elsewhere, the attacks in the Red Sea have become increasingly dangerous in the last days and the level of threats have likely not peaked yet, Maersk CEO Vincent Clerc said.
• Note as well that Brent’s prompt spread got back to highs from early Nov last year.
• For Brent, we have cleared the earlier Feb high of $81.55/bbl. This opens up key short-term resistance at $84.17/bbl (Jan 29 high).