August 19, 2022 06:37 GMT
Crude prices are drifting off from the peak seen yesterday after a rally earlier in the week. Uncertainty over economic growth and the impact on oil demand continue to weigh on the market despite the moderation in some US data this week.
- US EIA demand showed a recovery and OPEC Secretary General yesterday reiterated their view that oil demand was robust, and concern for Chinese economic slowdown was exaggerated.
- On the supply side many OPEC+ members continue to struggle to keep up with production targets although Nigeria, Libya and Ecuador have recently stated aims to increase from their current levels.
- Brent OCT 22 down -0.6% at 96.01$/bbl
- WTI SEP 22 down -0.6% at 89.97$/bbl
- Gasoil SEP 22 down -1% at 1064$/mt
- WTI-Brent up 0.02$/bbl at -6.49$/bbl
- Data suggested stronger than expected Russian crude production has driven crude time spreads lower in recent weeks but they have rebounded since Wednesday lows. EIA US production showed a dip lower this week and OPEC said their ability to meet oil demand will be tough and complex with spare capacity at just 2-3mbpd.
- Brent OCT 22-NOV 22 up 0.04$/bbl at 0.87$/bbl
- Brent DEC 22-DEC 23 down -0.09$/bbl at 8.05$/bbl
- Refined product markets are steady this morning having recovered after EIA data showed an increase in US product demand. Diesel cracks are especially strong with refiners struggling to produce enough to replenish depleted global stocks.
- US 321 crack down -0.4$/bbl at 45.22$/bbl
- US gasoline crack down -0.5$/bbl at 36.71$/bbl
- US ULSD crack down -0.2$/bbl at 62.24$/bbl