Crude Extends Decline Awaiting Outcome from JMMC Meeting

Crude falls further as the market watches for the outcome of the latest JMMC meeting and ahead of the updated US petroleum inventory stocks later today.

• Concerns for the impact on global oil demand of the potential higher for longer interest rates from major central banks and the recent US dollar strength have been weighing on oil markets despite the ongoing tight supplies. Earlier today Saudi reaffirmed the voluntary production cut of 1mb/d and the Russia the 300kbpd export cut through to year end although it will be reviewed next month to consider deepening the cut or increasing production.
• Reports that Russia is ready to partially lift its diesel ban in the coming days by allowing pipeline exports subject to quotas has also helped ease some upside pressure.
• Crude time spread moves have been more muted than flat price although are just slightly softer on the day.
  • Brent DEC 23 down -1.8% at 89.28$/bbl
  • WTI NOV 23 down -1.9% at 87.55$/bbl
  • WTI-Brent unchanged at -3.42$/bbl
  • Brent DEC 23-JAN 24 down -0.08$/bbl at 1.65$/bbl
  • Brent DEC 23-DEC 24 down -0.6$/bbl at 8.16$/bbl