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Crude and Spreads Extend Rally on Demand Optimism

OIL

Crude extends gains with optimism for Chinese oil demand this year and after US GDP data beat estimates.

  • Next technical resistance for WTI Mar23 is at the 18 Jan high of 82.66$/bbl and for Brent Mar23 is at the 1 Dec high of 89.19$/bbl.
  • The prompt spread is holding around flat but longer dated spreads are following the gains in the futures. The Dec23-Dec24 spread is edging up towards the recent highs of 5.8$/bbl from 23 Jan.
    • Brent MAR 23 up 1.8% at 87.7$/bbl
    • WTI MAR 23 up 2% at 81.79$/bbl
    • Brent MAR 23-APR 23 up 0.07$/bbl at 0$/bbl
    • Brent JUN 23-DEC 23 up 0.29$/bbl at 3.2$/bbl
    • Brent DEC 23-DEC 24 up 0.36$/bbl at 5.59$/bbl

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