Stimulus hopes drive crude prices higher

Brent prompt futures edged higher on Tuesday and early Wednesday at 56.2 $/b as US equity markets were on the rise, following Ms. Yellen’s stance on fiscal stimulus. President Biden’s warp speed vaccine operation hopes to produce 100 million doses for its first 100 days by potentially invoking the Defense Production Act. The EIA released its latest drilling productivity report yesterday. The stock of drilled uncompleted wells is seen down by the administration by 145 units in December, a clear sign that US shale producers are avoiding new capital costs and drilling their existing backlog of discovered wells.  

Finally, US refined products to the East coast are showing concerning patterns, as cargos are being diverted to Latin America, likely caused by swelling inventories. Finally, the IEA downgraded its 2021 global demand in their monthly report by about 240 kb/d, while slightly increasing its non-OPEC supply, denting the call on OPEC by 250 kb/d.