Crude and Products Edge Higher after Pull Back Yesterday

Crude prices are up slightly today after the 2$/bbl fall yesterday. Despite the fall Brent prices are still up over 8$/bbl from the low of 77.9$/bbl at the start of the month. The market continues to weigh recession and global economic uncertainty against optimism for Chinese demand and the potential for a drop in Russian output.

• Brent MAR 23 up 0.3% at 86.43$/bbl
• WTI MAR 23 up 0.2% at 80.27$/bbl
• Gasoil FEB 23 up 0.4% at 989.25$/mt
• WTI-Brent down -0.06$/bbl at -6.15$/bbl
• The OPEC JMMC advisory committee is expected to keep oil production levels unchanged when they meet next week on 1 Feb.
• The wide WTI-Brent spread has been helped by the potential disruption to Russian oil flows, expectation of another build in Cushing inventories this week and falling transatlantic freight rates.
• The potential tighter crude market is keeping most of the curve in backwardation although the prompt spread is back into negative territory having only moved positive early this week.
  • Brent MAR 23-APR 23 up 0.06$/bbl at -0.06$/bbl
  • Brent JUN 23-DEC 23 down -0.03$/bbl at 2.76$/bbl
• Oil products remains strong despite following the crude pull back yesterday. Prices are still supported by upcoming French refinery strikes adding to tight market concerns ahead of the EU ban on Russian oil products. The upcoming spring refinery maintenance season with US facilities only just returning from the winter disruption and seasonal trend higher in gasoline demand are also pressuring the upside.
  • US gasoline crack up 0.3$/bbl at 32.25$/bbl
  • US ULSD crack up 0.7$/bbl at 61.13$/bbl