Brent futures have been coming off over the start of the day, with the Apr contract trading from highs of $82.46/bbl at 08:30 GMT to retrace to $81.73/bbl at 10:00 GMT (time of writing). WTI prices have followed the same trend, trading at highs of $77.74/bbl at 08:30 GMT and at $77.06/bbl at 10:00 GMT.
Prices were less supported on the back of poor global economic data. Asian stocks retraced today as China reported poor manufacturing data, announcing a PMI (Purchasing Managers Index) of 49.2, signalling a contraction state for the fourth consecutive month despite rising from the 49.0 levels seen in December. Germany’s retail sales data showed a decrease of 1.6% in December, as opposed to an expected 0.7% increase. Both news signal a poor economic outlook, which in turn weighs on oil prices.
China’s exports of refined oil products are expected to fall 13.7% in Feb, according to OilChem. Despite a soon-to-come Lunar New Year celebration in the country, gasoline prices are expected to shrink in February amid a forecasted 3% fall in consumption.
The US Fed meeting is set to take place today at 19:00 GMT, after which we expect a decision on current interest rates.
The Apr/May and Apr/Oct Brent futures spreads are at $0.35/bbl and $2.39/bbl, respectively.
