Brent Crude Back Up to 72$/bbl but Still Negative on the Day

Crude regains some of the earlier losses with Brent back up to 72$/bbl as the oil market assesses the demand risks from the financial turmoil.

• Upside market support could potentially come from any production cut from OPEC or any decision by US to refill SPR reserves however neither are expected in the short term.
• The US is unlikely to refill the SPR before end of Q2 based on the current planned 26mbbl withdrawals and facility maintenance according to Rapidan Energy Group.
• OPEC+ are likely to wait for financial markets to calm with the next monitoring committee meeting scheduled for 3 April and full OPEC+ meeting in June.
• The second month Brent call-put skew has recovered from a low of -10.26% earlier today back to -8.3% but still below last week’s levels and the lowest since Dec 2021.
  • Brent MAY 23 down -1.4% at 71.97$/bbl
  • WTI APR 23 down -1.5% at 65.74$/bbl
  • Brent MAY 23-JUN 23 down -0.05$/bbl at 0.15$/bbl
  • Brent JUN 23-DEC 23 down -0.37$/bbl at 0.8$/bbl
  • Brent DEC 23-DEC 24 down -0.5$/bbl at 1.34$/bbl