US Weekly Oil Summary: Crude Output in 2024 Forecast at 13.11m b/d

Average US crude oil production has been revised down 0.1m b/d to 13.11m b/d for 2024, according to the EIA’s Short Term Energy Outlook.

• The US Energy Department is seeking 3m bbl of sour crude for the SPR for July 1-31 delivery.
• US oil and gas rigs rose by 4 to 623, according to Baker Hughes data Feb. 9. This is the highest level since Dec. 15.
• The latest weekly EIA oil data showed a recovery in both US gasoline and distillates implied demand, in line with seasonal trends.
• BP is planning to keep the 435kbpd Whiting, Indiana, refinery shut for three weeks for inspections, sources told Reuters.
• Oil output from the Permian basin in West Texas and New Mexico is set to reach a fresh record this year, US pipeline operator Plains said.
• USD: After an early extension of post-NFP strength, which saw the USD index climb to its best level since mid-November, the greenback has retraced back to broadly flat on the week as we approach the close. Higher US yields continue to support the dollar, however, the continued rally for major equity indices is providing some resistance to the advance.
• Core goods and core services were both revised lower in Dec, and oddly both by a larger amount than the core CPI figure. Core services: 4.8% vs 5.1%.
• S&P Global service and composite PMIs were revised down in the final January print. Services: 52.5 in Jan final (flash 52.9) from 51.4 in Dec Composite: 52.0 in Jan final (flash 52.3) from 50.9 in Dec.