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Crude Edges Lower Amid Stronger USD


Crude futures and time spreads are drifting lower to reverse the small gains seen earlier in the day driven by a stronger US dollar and as global oil supply appears to remain unaffected despite Red Sea tanker diversions.

  • The prompt Brent spread has pulled back to levels seen at the start of last week and the WTI spread is holding steady in contango suggesting ample near term supplies.
  • The longer dated Jun24-Dec24 spread are also edging lower with expectation of softer global demand growth in 2024 weighing on prices.
  • Technicals suggest Brent Mar 24 remains bearish with next support at the Jan 3 low of 74.79$/bbl and resistance up at the Jn 12 high of 80.75$/bbl.
    • Brent MAR 24 down -0.7% at 77.75$/bbl
    • WTI FEB 24 down -0.8% at 72.1$/bbl
    • WTI-Brent down -0.01$/bbl at -5.5$/bbl
    • Brent MAR 24-APR 24 down -0.04$/bbl at 0.28$/bbl
    • Brent JUN 24-DEC 24 down -0.06$/bbl at 1.68$/bbl
    • WTI FEB 24-MAR 24 down -0.03$/bbl at -0.14$/bbl
    • WTI JUN 24-DEC 24 down -0.09$/bbl at 1.68$/bbl

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