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Crude Down but Recoups Some Losses

OIL

WTI continues to be trading lower, although has rebounded somewhat from its intraday low of $82.98/b. A stronger dollar driven by higher-than-expected US S&P global October manufacturing PMI at 50 vs 49.8 prior has weighed on crude prices.

  • WTI DEC 23 down -2% at 83.77$/bbl
  • WTI-Brent down -0.08$/bbl at -4.38$/bbl
  • WTI DEC 23-JAN 24 down -0.3$/bbl at 0.77$/bbl
  • WTI JAN 24-FEB 24 down -0.19$/bbl at 0.83$/bbl
  • WTI DEC 23-DEC 24 down -1.16$/bbl at 6.93$/bbl
  • Alleviating some of the geopolitical risk premium on crude are comments from The IDF Chief of Staff that the ground offensive in Gaza is being delayed by “strategic considerations”.
  • However, wires are reporting that two rockets have struck an airbase in Iraq housing US force, upholding fears of the conflict escalating.
  • A total of 1,090mbbls of open Dec23 Brent options positions are currently due to expire on Thursday 26 October. Current open interest is 607k for calls contracts and 484k for puts. The aggregate open interest across all ICE Brent options is 1.818m of calls and 1.368m of puts contracts.

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