Crude Continues Climb Down

Crude has continued its climb down during the day but remains still within Friday’s range.

• WTI APR 24 down -1.5% at 78.75$/bbl
• WTI-Brent down -0.19$/bbl at -4.64$/bbl
• WTI APR 24-MAY 24 down -0.23$/bbl at 0.65$/bbl
• WTI JUN 24-DEC 24 down -0.35$/bbl at 3.87$/bbl
• The softening has erased much of the gains seen March 1, as news of OPEC+ cut extensions appears baked in.
• Moreover, high OPEC supplies and the inability of OPEC+ to abide by its pledges is likely providing some downside.
• A narrowing of the June-Dec backwardation implies that outlooks for market tightness may be softer despite the output cuts.
• A surge in exports from the Americas, primarily from the USGC, helped drive up global oil shipments in Feb.
• OPEC+ crude exports fell in February, but remained above levels shipped in H2 2023, according to Vortexa.