Brent highest since March

Oil followed wider markets higher as China attempts to support their recovery after oil demand has taken a big hit because of their zero covid policy. Brent rallied to the highest since 28^th Mar to close at 117.4$/bbl.

• Brent JUL 22 down -0.1% at 117.25$/bbl
• WTI JUL 22 down -0.2% at 113.83$/bbl
• Gasoil JUN 22 down -0.4% at 1155$/mt
• WTI-Brent up 0.06$/bbl at -3.32$/bbl
• Chinese apparent oil demand was down 8.6% from March to April but covid cases have started to fall raising the potential for the easing of lockdown restrictions.
• Refined product markets remain especially tight with low stocks and supplies as available refining capacity struggles to keep up with demand. US refiners are running at 93.2% utilization last week with East Coast at 97%. US gasoline and diesel demand remains strong despite the record pump prices and is likely to increase into the driving season.
• The oil curves remain strongly backwardated with the front Brent spread moving from 1.15$/bbl to 3.2$/bbl this month and WTI front spread from 1.49$/bbl to 2.85$/bbl. The Dec22-Dec23 spreads are the highest since early Mar with Brent at 13.77$/bbl and WTI at 14.31$/bbl