Oil remains well supported – ING

Oil prices remain well supported with ICE Brent settling 1% higher yesterday, ING’s commodity analysts Warren Patterson and Ewa Manthey note.

Market sentiment remains positive

“Sentiment remains positive on the back of colder weather across parts of the Northern Hemisphere, which is likely to boost oil demand. In addition, spot Asian LNG is trading at a premium to oil, increasing the risk of substitution.”

“Meanwhile, uncertainty over how hawkish Trump will be with Iran will be providing some support. Asian buyers have already been looking for alternative grades from the Middle East, with broader sanctions against Russia and Iran making this oil flow more difficult. This move had pushed the Brent-Dubai spread into negative territory in recent weeks, although it has since reverted to a premium.”