Brent prices for the Mar tenor have strengthened this afternoon, rising from below $79/bbl as of 14:00 GMT to $79.91/bbl at 16:45 GMT (time of writing). WTI futures for the same tenor also gathered support into the afternoon and are currently sitting at $74.77/bbl.
Amid this strengthening, tensions rose in the Middle East as the US and British forces carried out another round of strikes this week in Yemen, targeting additional Houthi sites. Furthermore, over 20% of North Dakota’s oil output remains shut because of cold weather and operational challenges – as per the state’s pipeline authority. Market participants will be on the lookout for how this shutdown could impact US API and EIA data – due to be released today at 21:30 GMT and tomorrow at 15:30 GMT, respectively. Amid these supply disruptions, Libya’s Sharara oil field restarted on Jan 21 and Norway’s crude production rose to 1.85mbpd in December 2023, up from 1.81mbpd in the previous month. Finally, the front-month and six-month Brent spreads are currently at $0.44/bbl and $1.99/bbl, respectively.
