Within Recent Ranges, But Up For The Week

The first part of the Friday session has seen oil benchmarks firm modestly. The active Brent contract (K4) was last near $82.20/bbl, up around 0.35% for the session so far. We are tracking around 1.7% higher for the week at this stage. The active WTI contract is near $78.50/bbl, up around 2.6% for the week so far.

• News flow around oil has been light so far today. BBG noted that major China buyers ramped up derivative related activity, which helps price benchmarks (see this link). Broader risk appetite has been firmer in the equity space, which has likely helped oil at the margin.
• Earlier we had China PMI data, which was slightly better than expected, although the manufacturing index remain comfortably in contraction territory. There are some signs that we may a better next month.
• Elsewhere, US President Biden when asked on the prospect of an Israel-Hamas ceasefire agreement says that 'hope springs eternal,' but that it is unlikely to start by Monday 4 March (previously raised by Biden as a target date).
• Wires also carried comments from the leader of the Houthi forces in Yemen, claiming that the group will introduce military "surprises" in their Red Sea operations, which their "enemies" will not expect.
• For Brent, we remain within recent ranges. Late Jan highs at $83.65/bbl remains the upside focus, while recent lows rest near $80/bbl.