Back-To-Back Weekly Losses

Brent crude is back above $90/bbl, +0.90% on NY closing levels. Still, at this stage we are -5.65% lower for the week, which follows last week's -2.62% decline. Brent is below all key MAs and is not too far away from mid-October lows (just under $89/bbl). WTI sits close to $82.50/bbl currently, but traded below mid-October lows overnight.

• Forward curves are generally indicating reduced supply pressure rather than tighter markets. Supply pressures were generally seen as getter tighter in the lead up to the northern hemisphere winter, but that hasn't materialized yet. The Brent prompt spread is back to early September lows.
• The other factor is that optimism around China shifting away from its CZS may take time to generate stronger physical oil demand.
• Looking ahead the oil calendar is fairly light for the week ahead, outside of the weekly inventory reports. Focus is likely to rest on Wednesday round of preliminary PMI prints for the EU area and the US, as an update on the global demand picture.