CRUDE WRAP: WTI (G5) SETTLES USD 0.08 HIGHER AT 69.46/BBL; BRENT (G5) SETTLES USD 0.06 HIGHER AT 72.94/BBL

Analysis details (19:31)

The crude complex ended the day relatively flat, in a marked turnaround from the pressure seen in the European session and the start of the US one. Recapping, price action in the first half of the EZ morning was more notably bearish as the complex continued to be waned on in wake of Thursday’s reports that the G7 could adjust the Russian energy price cap with pressure also coming from the broad-based downbeat risk tone. As such, WTI and Brent printed troughs of USD 68.42/bbl and USD 72.00/bbl, respectively. Thereafter, crude lifted off lows on a Reuters source report that oil supplies via the Russian Druzhba pipeline have been halted due to technical issues since December 19th. However, benchmarks initially didn’t manage to recover into the green and reversed thereafter after Hungary said shipments should resolve in the next few days. Nonetheless, as the session progressed and as risk sentiment significantly picked up a notable bid was seen in the energy space to see WTI and Brent hit highs of USD 69.85/bbl and 73.29/bbl, respectively. Note, with key risk events largely behind us until the NY, volume is expected to be a lot lower on account of the Christmas holidays. Lastly, natgas saw strength to a near 2yr high on cooler forecasts, rising LNG feedgas, and cold mid-January outlook. For the record, in the weekly Baker Hughes rig count data, oil rose 1 to 483, natgas fell 1 to 102, leaving the total unchanged at 589.

20 Dec 2024 - 19:31- EnergyGeopolitical- Source: Newsquawk