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Crude Back Within Yesterday's Range after Overnight Rally

OIL

Brent crude front month is back trading within yesterday’s range after pulling back from an earlier rally up to 84$/bbl after stronger overnight PMI data from China. Focus has returned to the ongoing concern for an economic slowdown and global oil demand growth.

  • Earlier today Goldman Sachs said oil prices are expected to rise above $100/bbl by Q4 2023 supported by the Chinese demand recovery. A China recovery would result in a reduction in spare capacity made worse due to a lack of investment.
  • Crude time spreads have followed the move with both prompt and longer dated spreads now slightly down on the day.
    • Brent MAY 23 down -0.5% at 83.04$/bbl
    • WTI APR 23 down -0.8% at 76.44$/bbl
    • Gasoil MAR 23 down -0.5% at 829.5$/mt
    • WTI-Brent up 0.61$/bbl at -6.43$/bbl
    • Brent MAY 23-JUN 23 down -0.03$/bbl at 0.59$/bbl
    • Brent JUN 23-DEC 23 down -0.07$/bbl at 2.81$/bbl
    • WTI APR 23-MAY 23 down -0.03$/bbl at -0.17$/bbl
    • WTI JUN 23-DEC 23 down -0.18$/bbl at 2.37$/bbl

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