The Apr Brent futures contract continued to be supported overnight with prices holding above the $83/bbl mark initially before dipping below it and trading at $82.77/bbl at 10:00 GMT (time of writing). Apr WTI saw a similar softening as prices were at $77.62/bbl at 10:00 GMT.
Oil prices have been supported by news of the ongoing conflicts as well as China reporting an increase in tourism revenues, which rose by 47.3% year-on-year, above pre-COVID levels, as the Lunar New Year celebrations unfolded. Moreover, the Chinese central bank cut the 5-year loan prime rate by 0.25% to 3.95%, the first cut since August and the largest cut on record. It will be important to monitor whether this cut will really bolster credit demand.
North Dakotan oil companies are expected to increase their production by between 10 and 30kbpd in 2024, according to the director of the US state’s Department of Mineral Resources. This represents a modest increase on the back of the potential addition of one or two drilling rigs.
The front and 6-month Brent futures spreads are at $0.76/bbl and $3.47/bbl, respectively.
