Crude Drifting Lower After 3.8% Fall Yesterday

Oil saw another big fall yesterday and continues this morning as concerns for future economic risks and oil demand growth drive prices lower. The return of Libya production has also helped to ease the tight supply ahead of the OPEC+ meeting tomorrow.

• Brent OCT 22 down -0.2% at 99.81$/bbl
  
• WTI SEP 22 down -0.1% at 93.76$/bbl
• Gasoil AUG 22 up 0.4% at 1033$/mt
• WTI-Brent up 0.07$/bbl at -7.54$/bbl

• Gasoline spreads initially followed the crude move but diesel maintained strength from gains made earlier in the day. Tight supply with limited refining capacity and seasonal low stocks levels are supporting diesel prices. The latest EIA data showed stocks still over 22% below the 5-year average normal.
  • Brent OCT 22-NOV 22 down -0.07$/bbl at 2.01$/bbl
  • Brent DEC 22-DEC 23 down -0.01$/bbl at 9.07$/bbl
• Time spreads also are drifting lower in both crude and gasoil, following the move in outright crude. Spreads remain positive, and the tight global supply picture is keeping the curve backwardated despite fears for future demand and signs that Russian seaborne output has stabilised. The reduction in output from Russian due to sanctions and global flow rebalancing has not been as much as was expected earlier in the year.
  • US gasoline crack up 0.3$/bbl at 32.23$/bbl
  • US ULSD crack up 0.2$/bbl at 50.35$/bbl