The Jun Brent futures contract strengthened back into $86 territory this morning and stands at $86.40/bbl as of 13:05 GMT (time of writing). The benchmark futures contract is poised to end the month higher for a third consecutive time. An analysis by Wood Mackenzie found that more than a fifth of global oil refining capacity is at risk of closure amid weakening gasoline margins and rising pressure to reduce carbon emissions. In macroeconomic news, the US economy grew faster than previously estimated in Q4’23 with GDP rising at 3.4% (revised from 3.2%). Players will be on the lookout for further directional cues on oil prices from tomorrow’s US personal consumption expenditures data and next week’s OPEC JMMC meeting. Finally, Jun/Jul and Jun/Dec Brent spreads are currently at $0.80/bbl and $4.30/bbl, respectively.
