Crude Edges Higher After Fall on Friday

Crude markets are edging higher after seeing a big fall on Friday on concern for oil demand with uncertainty over the timing of a potential Chinese recovery and with further central bank tightening expected in the coming months.

• Brent APR 23 up 0.9% at 80.62$/bbl
• WTI MAR 23 up 0.7% at 73.89$/bbl
• Gasoil FEB 23 down -0.4% at 816$/mt
• WTI-Brent down -0.17$/bbl at -6.36$/bbl
• Supply uncertainty comes from the impact of the EU ban on seaborne Russian oil products which came into effect yesterday and whether Russian will be able to find alternative buyers for the missing European demand. G7, EU and Australia agreed to introduce a price cap of 100$/bbl on premium products such as diesel and 45$/bbl for products like fuel oil. Russian output has so far remained robust despite existing crude sanctions.
  • Brent APR 23-MAY 23 down -0.04$/bbl at 0.19$/bbl
  • Brent JUN 23-DEC 23 up 0.08$/bbl at 2.38$/bbl
• The WTI prompt spreads remain in contango suggesting ample short term supplies amid weak demand. The longer dated spreads have all softened over the last week but remain in backwardation.
• Diesel and gasoline continue to trend lower in line with moves in the crude futures although diesel is edging slightly higher this morning. Weak demand and concerns for global demand growth are outweighing tight supplies with high US refinery maintenance outages expected in the coming weeks.
  • US gasoline crack down -0.5$/bbl at 23.87$/bbl
  • US ULSD crack up 0.4$/bbl at 44.24$/bbl