Crude Bounces and Gasoil Spreads Rally

Brent crude drifted as low as 103.84$/bbl today before bouncing back. Uncertainty over Chinese demand is adding downward pressure to prices while tight physical oil is providing support.

• With supply unchanged and with limited spare capacity the time spreads are relatively stable today. Only Saudi Arabia and UAE have reported any significant spare capacity although there are conflicting estimations as to how much available turnup they have.
• The tight supply is keeping strong crude backwardation and Gasoil spreads have actually strengthened further today. The front Gasoil spreads is up to the equivalent of 9.9$/bbl compared to 3.5$/bbl for Brent with diesel supply even tighter than Brent.
• Brent SEP 22 down -1.7% at 105.23$/bbl
• WTI AUG 22 down -1.9% at 102.79$/bbl
• Gasoil JUL 22 up 5.3% at 1193.5$/mt
• Brent SEP 22-OCT 22 down -0.03$/bbl at 3.53$/bbl
• Brent DEC 22-DEC 23 down -0.8$/bbl at 10.79$/bbl
• Gasoil JUL 22-AUG 22 up 12.25$/mt at 72.25$/mt
• Gasoil DEC 22-DEC 23 up 12.75$/mt at 143.5$/mt