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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Crude futures and time spreads have resumed the recovery from yesterday as the financial markets stabilise ahead of the US Fed rate decision tomorrow.
- Despite the recovery, the backwardation of the Brent crude forward curve has still weakened significantly over the last couple of weeks. The move was initially driven by resilient Russian oil output supplies combined with central bank rate tightening and recession fears. The banking turmoil over the last week has added to the downside pressure on spreads driving the prompt spread to near parity yesterday before recovering ground.
- The Dec23-Dec24 spread has recovered from a low of 0.9$/bbl yesterday back up to 2.3$/bbl but still well below the recent peak of 5.32$/bbl from 7 March.
- Russian supply uncertainty and China demand optimism are still providing support. The oil market is expected to move into deficit in June and investors are seen returning to commodities with an upside in oil process of $5 to $10/bbl according to Goldman Sachs today.
- Brent MAY 23 up 0.9% at 74.45$/bbl
- WTI MAY 23 up 1% at 68.5$/bbl
- Brent MAY 23-JUN 23 down -0.01$/bbl at 0.24$/bbl
- Brent JUN 23-DEC 23 up 0.1$/bbl at 1.21$/bbl
- Brent DEC 23-DEC 24 up 0.27$/bbl at 2.27$/bbl
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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