Crude Eases Lower on Modest 2023 China Growth Targets

Crude is pulling back from the recent highs on Friday after China announced more cautious 2023 growth targets over the weekend. Crude trended higher last week to reach the highest since mid Feb driven by the expected recovery in China oil demand and due to supply risks with Russia expected to cut March production by 500kbpd. Inflation concerns and further central bank tightening continue to limit any upside moves.

• Brent MAY 23 down -0.6% at 85.28$/bbl
• WTI APR 23 down -0.6% at 79.19$/bbl
• Gasoil MAR 23 down -0.8% at 849.25$/mt
• WTI-Brent up 0.03$/bbl at -5.98$/bbl
• Saudi Arabia have increased the OSP of crude to Asia and Europe in April as a sign that they see healthy demand from the regions. They left OSPs to the US unchanged.
• Crude time spreads are also edging down from the highs seen later last week. The WTI prompt spread remains in contango suggesting ample short term US crude supplies amid weak demand although at -0.1$/bbl is at the highest since late December.
  • Brent MAY 23-JUN 23 down -0.01$/bbl at 0.56$/bbl
  • Brent JUN 23-DEC 23 down -0.1$/bbl at 2.8$/bbl
• Diesel and gasoline cracks spreads are steady after ticking higher last week. Spreads are supported by an expected reduction in gasoil shipments from China in March, the spring refinery maintenance seasons, Russian product supply uncertainty and higher transportation costs due to longer shipment distances. The stronger than expected Russian output so far this year and above normal storage levels are limiting upside moves.
  • US gasoline crack down -0.2$/bbl at 35.66$/bbl
  • US ULSD crack down -0.7$/bbl at 41.45$/bbl