Brent prices for the Mar tenor hit a zenith of $79/bbl at 13:20 GMT but were sold down to below $78/bbl by 15:40 GMT, ultimately climbing to $78.50/bbl as of 17:00 GMT (time of writing). WTI futures for the same tenor saw a similar trajectory and sit at $72.86/bbl at present. The volatility continues to stem from the escalation in the conflict in the Middle East over which a multitude of players, the latest being Shell, have suspended all shipments through the Bab-el Mandeb strait. In a speech from 16:00 GMT today, US Fed governor Christopher Waller announced that the US was “within striking distance” of the Fed’s 2% inflation goal but that the central bank should not rush until it holds clear conviction that inflation will remain low, triggering gains in the US dollar. A stronger dollar makes oil more expensive for foreign purchasers. Finally, the front-month and six-month Brent spreads are currently at $0.37/bbl and $1.73/bbl, respectively.
