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Crude Extends Decline With Focus Back on Demand

OIL

Crude extends the decline as focus shifts back to global demand concerns in US and China and has largely dismissed the impact of the latest voluntary Saudi production cut for July.

  • Technical support for Brent is at the 2 June low of 74.18$/bbl and WTI at 70.0$/bbl.
  • China May trade data is out tomorrow as the market watches for a slowing in export growth following the previous weaker official manufacturing PMI data.
  • WTI continues to fall faster than Brent to push the discount out to -4.5$/bbl.
    • Brent AUG 23 down -2.5% at 74.82$/bbl
    • WTI JUL 23 down -2.7% at 70.2$/bbl
    • WTI-Brent up 0.01$/bbl at -4.46$/bbl
    • Brent AUG 23-SEP 23 down -0.05$/bbl at 0.19$/bbl
    • Brent DEC 23-DEC 24 down -0.34$/bbl at 3.22$/bbl
    • WTI JUL 23-AUG 23 down -0.05$/bbl at -0.16$/bbl
    • WTI DEC 23-DEC 24 down -0.34$/bbl at 3.51$/bbl

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