Crude Down on the Week With Focus On Central Bank Tightening

Crude futures and time spreads steady after a decline of over 3$/bbl on the week as the market focus remains on the potential for further central back rate hikes and weaker global demand growth.

• OPEC+ production cuts, the extra voluntary cut from Saudi Arabia in July and some economic stimulus measures from China have done little to change the bearish mood of the futures market.
• Brent front month has fallen from a high of 77.2$/bbl on 21 June to a low earlier today of 72.14$/bbl.
• The Aug-Sep time spreads are suggesting ample near term supplies with the prompt Brent spread the lowest since January. The Dec23-24 spread has regained some of the losses from earlier today but curve backwardation remains softer on the week.
  • Brent AUG 23 down -1.2% at 73.22$/bbl
  • WTI AUG 23 down -1.4% at 68.51$/bbl
  • WTI-Brent down -0.02$/bbl at -4.69$/bbl
  • Brent AUG 23-SEP 23 up 0.05$/bbl at -0.16$/bbl
  • Brent DEC 23-DEC 24 down -0.17$/bbl at 2.53$/bbl