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Crude Bouncing in 5$/bbl Range

OIL

Crude has started the day on a stronger note ahead of the expected US Fed interest rate hike later. This follows ending the day slightly down yesterday after trading higher for much of the day. Concerns the oil demand growth due to economic risks are keeping oil prices down despite ongoing global supply concerns.

  • US announced plans to start to replenish the SPR stocks after fiscal year 2023 after drawing stocks down to the lowest since 1984 this year. They are proposing fixed price purchases rather than the current delivery based on the future floating price.
    • Brent SEP 22 up 0.3% at 104.74$/bbl
    • WTI SEP 22 up 0.7% at 95.69$/bbl
    • Gasoil AUG 22 down -0.6% at 1063$/mt
    • WTI-Brent up 0.02$/bbl at -9.13$/bbl
  • While outright Brent crude prices are bouncing within a 102$/bbl to 107$/bbl range during the last week, the prompt Brent spread has rallied to record highs. Global supply is struggling to keep up with demand resulting in a tight physical market and steep backwardation at the front of the curve.
    • Brent SEP 22-OCT 22 up 0.03$/bbl at 4.97$/bbl
    • Brent DEC 22-DEC 23 up 0.2$/bbl at 9.05$/bbl
  • Refined product markets have recovered slightly after a recent dip in the crack spreads. Low inventories and limited supply are supporting spreads despite concerns for consumption. The updated EIA inventory data is release later today and expected to show stocks still below normal, especially for distillates.
    • US gasoline crack down -0.5$/bbl at 34.34$/bbl
    • US ULSD crack down -0.3$/bbl at 52.09$/bbl
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Crude has started the day on a stronger note ahead of the expected US Fed interest rate hike later. This follows ending the day slightly down yesterday after trading higher for much of the day. Concerns the oil demand growth due to economic risks are keeping oil prices down despite ongoing global supply concerns.

  • US announced plans to start to replenish the SPR stocks after fiscal year 2023 after drawing stocks down to the lowest since 1984 this year. They are proposing fixed price purchases rather than the current delivery based on the future floating price.
    • Brent SEP 22 up 0.3% at 104.74$/bbl
    • WTI SEP 22 up 0.7% at 95.69$/bbl
    • Gasoil AUG 22 down -0.6% at 1063$/mt
    • WTI-Brent up 0.02$/bbl at -9.13$/bbl
  • While outright Brent crude prices are bouncing within a 102$/bbl to 107$/bbl range during the last week, the prompt Brent spread has rallied to record highs. Global supply is struggling to keep up with demand resulting in a tight physical market and steep backwardation at the front of the curve.
    • Brent SEP 22-OCT 22 up 0.03$/bbl at 4.97$/bbl
    • Brent DEC 22-DEC 23 up 0.2$/bbl at 9.05$/bbl
  • Refined product markets have recovered slightly after a recent dip in the crack spreads. Low inventories and limited supply are supporting spreads despite concerns for consumption. The updated EIA inventory data is release later today and expected to show stocks still below normal, especially for distillates.
    • US gasoline crack down -0.5$/bbl at 34.34$/bbl
    • US ULSD crack down -0.3$/bbl at 52.09$/bbl