Crude Eases Back Despite Higher Demand Growth Forecast from IEA

Crude eases back negative on the day as the global economy remains in focus despite a short rally after the IEA oil monthly report forecast higher demand growth with Chinese demand growth surpassing expectations.

• The prompt Brent spread has lost most of the gains from last week while the Dec23-Dec24 spread is holding slightly stronger but still down on the day.
• IEA has raised its 2023 oil demand growth forecast by 200kbpd to 2.2mbpd with 60% of growth from China which is expected to rise by a record of 1.3mbpd this year.
• IEA’s global oil-supply forecast remains at the same level from last month’s report at 101.1mbpd. IEA showed Russia crude oil exports at a post-invasion high of 8.3mbpd in April.
  • Brent JUL 23 down -0.6% at 74.75$/bbl
  • WTI JUN 23 down -0.6% at 70.68$/bbl
  • Brent JUL 23-AUG 23 down -0.05$/bbl at 0.16$/bbl
  • Brent DEC 23-DEC 24 down -0.07$/bbl at 2.55$/bbl
  • WTI JUN 23-JUL 23 down -0.01$/bbl at 0.01$/bbl
  • WTI JUN 23-DEC 23 down -0.03$/bbl at 1.62$/bbl
  • WTI DEC 23-DEC 24 down -0.05$/bbl at 3.04$/bbl