Crude Edging Higher with a Weaker Dollar and China Optimism

Crude prices are edging higher with a recovery in Chinese demand and a weaker dollar providing support following a week of decline with concern for more US central bank rate hikes. Prices are expected to increase later this year with higher demand in China although many analyst target expectations have been reduced recently due to Russian supply maintaining stronger than expected and with ongoing economic concerns.

• Brent MAY 23 up 0.5% at 83.21$/bbl
• WTI APR 23 up 0.5% at 77.1$/bbl
• Gasoil APR 23 up 1.2% at 822$/mt
• WTI-Brent down -0.06$/bbl at -6.01$/bbl
• Saudi Aramco CEO yesterday said they are cautiously optimistic in the short to midterm and the market will remain tightly balanced. Downside concerns have driven the near term options put skew to the largest since November but Brent managed money net longs positions are near the highest since October.
• Crude time spreads are steady with prompt spreads towards the highest since November. Longer dated spreads are generally following the moves in the wider crude market and are holding in the middle of the range seen so far this year.
  • Brent MAY 23-JUN 23 unchanged at 0.62$/bbl
  • Brent JUN 23-DEC 23 up 0.06$/bbl at 2.61$/bbl
• Refined product crack spreads are edging higher today as diesel extends the recovery from late last week supported by an expected drop in diesel shipments from Asia due to recovering domestic demand in China.
  • US gasoline crack up 0.3$/bbl at 34.61$/bbl
  • US ULSD crack up 0.6$/bbl at 40.69$/bbl