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Brent Prompt Spread Highest Since Nov as Crude Recovers

OIL

The Brent crude prompt time spread has risen to the highest since mid November as front month futures recover ground following a 3.4% decline yesterday. The spread has been holding a narrow backwardation so far this year after briefly falling into contango during December.

  • Crude markets are weighing lower global demand growth expectations, and strong supply despite OPEC+ cuts with reduced Libya oil exports and risks from Middle East tensions.
  • The WTI prompt spread remains in contango despite also seeing some gains today suggesting ample near term supplies. The longer dated Jun24-Dec24 spreads are holding withing a range seen since Dec 20.
  • The WTI-Brent spread is today trading around -5.3$/bbl after trending down from around -3.2$/bbl in early October assisted by a recover in US Cushing crude inventories during Q4.
    • Brent MAR 24 up 1.7% at 77.38$/bbl
    • WTI FEB 24 up 1.7% at 71.95$/bbl
    • WTI-Brent down -0.06$/bbl at -5.31$/bbl
    • Brent MAR 24-APR 24 up 0.08$/bbl at 0.29$/bbl
    • Brent JUN 24-DEC 24 up 0.2$/bbl at 1.73$/bbl
    • WTI FEB 24-MAR 24 up 0.02$/bbl at -0.13$/bbl
    • WTI JUN 24-DEC 24 up 0.17$/bbl at 1.81$/bbl

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