The Mar’25 Brent futures flat price strengthened overnight from the $77/bbl level, reaching a high of $77.88/bbl at 08:38 GMT and is set to test the $78/bbl resistance level. Alongside expectations of further sanctions on Russia and hopes for a revival of Chinese demand, sentiment was boosted by a larger-than-expected draw in API crude inventories of 4.02mb. In the news, CNOOC said on Wednesday it was aware of its inclusion on a U.S. Defense Department list of companies linked to the Chinese military and would continue to follow up the move. Exxon expects a $700 million profit hit from lower oil prices and shrinking refining margins in Q4’24, signaling challenges for Big Oil amid global crude oversupply and Chinese economic concerns. Sinopec’s Zhenhai refinery reported a fire at its new 220kb/d CDU during commissioning, which was extinguished with no injuries. Iran is pressuring China to release $1.7 billion worth of oil stranded in Chinese ports since 2018 due to U.S. sanctions, as it faces mounting storage fees and urgency to sell the oil before former President Trump returns to power and potentially tightens sanctions further. Finally, the front (Mar/Apr) and 6-month (Mar/Sep) Brent futures spreads are at $0.70/bbl and $2.96/bbl respectively.
