Brent Crude Falls to 85$/bbl Led by Economic Demand Fears

Crude resumes the decline driven by economic concerns and possible future interest rate rises despite the ongoing tight supplies due to OPEC cuts until year end. Weak US gasoline demand and signs that Russia may start to ease its fuel export ban soon are adding to the downward pressure.

• A sharp sell-off in Brent futures yesterday resulted in a break of support of the 50-day EMA and levels are now at the psychological support level of 85$/bbl for the first time since 28 August.
• WTI front month is approaching the next support level at 83.22$/bbl which is the 38.2% retracement of the May 4 - Sep 28 bull run.
• The WTI-Brent spread has closed to -3.24$/bbl with the US economic concerns adding to the support from low inventories at Cushing despite the small gain this week.
• Crude time spreads are following the flat price move, but the prompt remains above the low of 1.44$/bbl from earlier this week.
  • Brent DEC 23 down -0.7% at 85.17$/bbl
  • WTI NOV 23 down -0.8% at 83.55$/bbl
  • WTI-Brent up 0.05$/bbl at -3.26$/bbl
  • Brent DEC 23-JAN 24 down -0.1$/bbl at 1.52$/bbl
  • Brent DEC 23-DEC 24 down -0.39$/bbl at 7.2$/bbl
  • WTI NOV 23-DEC 23 down -0.03$/bbl at 1.64$/bbl
  • WTI DEC 23-JAN 24 down -0.08$/bbl at 1.49$/bbl
  • WTI DEC 23-DEC 24 down -0.41$/bbl at 8.24$/bbl