Beach Energy Limited

Brent crude futures steadied around $83 per barrel on Monday, holding recent gains as the prospect of additional oil supply cuts from Russia outweighed rising crude inventories in the US and market concerns about persistent inflation and higher interest rates. Russia announced plans to cut oil exports from its western ports by up to 25% in March compared to February, exceeding its previously announced output curbs of 500,000 barrels per day. On top of that, investors expect China’s oil imports to hit a record high in 2023 amid rising demand for transportation fuel and as new refineries come online. Meanwhile, the latest EIA report showed that US inventories rose by 7.648 million barrels to 850.6 million in the week ending February 17th, the highest level since September. A hotter-than-expected US PCE reading, the Fed’s preferred inflation gauge, also bolstered expectations of further monetary tightening that raises recessionary risks.