The Apr Brent futures contract has seen increased support overnight with prices strengthening above the $79/bbl mark and seen at $79.14/bbl at 10:00 GMT (time of writing). Apr WTI saw a similar upward momentum with prices at $74/bbl at 10:00 GMT.
Oil prices were buoyed today with US crude production expected to plateau this year after a record 2023, according to EIA estimates released on Tuesday. December notably saw a record crude output of 13.3mbpd. Additional support was brought by analysts being concerned that the Middle Eastern tensions would not fade any time soon as well as an ongoing Russia-Ukraine conflict.
The Saudi government ordered to suspend work on Saudi Aramco’s oil production expansion plan. The capacity plan to boost production by 13mbpd by 2027 was likely halted in the context of weak demand, according to analysts.
Brazilian firm Petrobras plans more than $100bn worth of investments this decade to boost offshore oil production. This is in line with the company wanting to ‘be there at the very end of the fade-out of oil’, according to CEO Jean Paul Prates.
The front and 6-month Brent futures spreads are at $0.33/bbl and $2.27 /bbl, respectively.
