Having edged above the $83/bbl handles in the day, the May Brent futures contract seems poised to end the afternoon lower, trading at $82.10/bbl at 16.45 GMT. EIA stats released in the afternoon saw US crude inventories rise by over 4.2mbbls, surpassing analysts’ expectations of a 2.74mbbl build though far below the API reported build of 8.4mbbls. Levels found further pressure from a stronger US dollar with US Fed officials cautioning against against expecting interest rates to fall too quickly. The January U.S. personal consumption expenditures (PCE) price index is due on Thursday and will be a key inflationary indicator for the Fed and will filter into further decisions. Analysts forecast Saudi Aramco’s median net income for Q4 to be estimated at $26.7 billion. The May/Jun and May/Nov Brent futures spreads are currently sitting at $0.67/bbl and $3.64/bbl respectively.
