COM - Cautiously Bullish Oil
2024-02-16 10:15:00 ET
Summary
- The physical oil market remains relatively bullish, with crack spreads and futures prompt spreads continuing to trend higher.
- This suggests the oil market is much tighter through the first few months of 2024 than many were expecting.
- However, as a result of refinery maintenance season and weather induced refinery closures, crude oil demand has temporarily taken a hit, and how impactful this is to price will depend on whether refined product inventory draws can offset crude oil inventory builds.
- But, as refinery demand comes back online in the coming weeks, coupled with favourable seasonality, investor positioning and a tight physical market, the oil price remains well supported for the time being.
Crude oil’s fundamentals remain favourable and continue to suggest the oil market is much tighter than anticipated through the first few weeks of 2024....
Cautiously Bullish Oil