Crude Edges Down from Overnight Peak

Crude futures and longer dated time spread are edging lower with front month Brent down from a peak at around 86.7$/bbl in overnight trading. Brent crude prices are holding just below the February peak at 86.9$/bbl.

• Supply uncertainty due to the Russian production cut in March and optimism over China demand are supporting prices. Oil exports from Russia have held up higher than expected since the introduction of the EU and G7 sanctions in December and February and have limited upside price moves.
• Weak demand in the US and concern for further central bank tightening and an economic slowdown are also weighing on markets. The WTI-Brent spread has been trading in contango this year suggesting ample supplies, but the spread is edging up to the highest since late December at -0.09$/bbl.
• The WTI-Brent spread continues to close in to -5.6$/bbl from around 6.5$/bbl on 2 March.
  • Brent MAY 23 down -0.6% at 85.65$/bbl
  • WTI APR 23 down -0.6% at 79.95$/bbl
  • WTI-Brent up 0.07$/bbl at -5.61$/bbl
  • Brent MAY 23-JUN 23 down -0.02$/bbl at 0.54$/bbl
  • Brent JUN 23-DEC 23 down -0.09$/bbl at 2.74$/bbl
  • WTI APR 23-MAY 23 up 0.01$/bbl at -0.09$/bbl
  • WTI JUN 23-DEC 23 down -0.03$/bbl at 2.56$/bbl