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Crude Edges Back Up on Higher OPEC Demand Forecast in China

OIL

Crude has edged back up from earlier losses supported by an increase in oil demand forecast in China this year by 710kbpd compared to 590kbpd forecast last month according to the latest OPEC monthly oil report. The overall oil demand growth forecast for this year however remains unchanged from last month at 2.3mbpd due to lower OECD demand forecast.

  • Despite the recovery, front month crude is still trading down on the day weighed down by the wider financial market concerns. Front month Brent is down from a high coming into the week of around 83.5$/bbl.
  • Brent time spreads are also trading back up towards previous close levels while the WTI-Brent spread is holding around -6$/bbl.
    • Brent MAY 23 down -0.7% at 80.23$/bbl
    • WTI APR 23 down -0.9% at 74.12$/bbl
    • WTI-Brent down -0.11$/bbl at -5.97$/bbl
    • Brent MAY 23-JUN 23 down -0.03$/bbl at 0.51$/bbl
    • Brent JUN 23-DEC 23 up 0.02$/bbl at 2.27$/bbl
    • Brent DEC 23-DEC 24 down -0.06$/bbl at 3.99$/bbl

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