Crude flat price has been trading a touch below $83/bbl levels on Monday morning, trading at $82.68/bbl at 10:30 GMT.
Price action has been well supported amid persistent geopolitical tensions surrounding the Red Sea. On the other hand, slowing demand forecasts from the IEA as well as a higher-than-expected increase in US producer price index numbers in January amid strong gains in the costs of services could amplify inflation concerns, and therefore a bearish factor. Analysts have noted that OPEC’s spare capacity currently sits at an 8-year high of 6.4mbpd, providing a buffer against potential supply disruptions. Houthi militants in Yemen said on Monday they had attacked the Rubymar cargo ship in the Gulf of Aden. The cargo ship is Belize-flagged, British-registered and Lebanese-operated. Singapore plans to introduce a levy on air fares to pay for sustainable aviation fuel.
The front- and 6-month Brent futures spreads are at $0.69/bbl and $3.40/bbl respectively.
