Crude Extends Recovery Towards Flat on the Week

Crude futures extend the earlier recovery back towards the start of week levels with tight supplies and inventory drawdown weighed against demand concern and optimism for some returning supply.

• Crude backwardation is strengthening in line with the futures gains with the prompt Brent time spread back up to the highest since 16 August.
• Next Brent resistance is at the 21 Aug high of 85.86$/bbl while the support at the 50 day EMA of 81.75$/bbl has remained intact.
• The WTI-Brent spread has held relatively steady this week but is drifting slightly lower today down to -4.4$/bbl.
  • Brent OCT 23 up 1.5% at 84.6$/bbl
  • WTI OCT 23 up 1.4% at 80.19$/bbl
  • WTI-Brent down -0.15$/bbl at -4.41$/bbl
  • Brent OCT 23-NOV 23 up 0.09$/bbl at 0.53$/bbl
  • Brent DEC 23-DEC 24 up 0.35$/bbl at 4.39$/bbl
  • WTI OCT 23-NOV 23 up 0.03$/bbl at 0.42$/bbl
  • WTI DEC 23-DEC 24 up 0.33$/bbl at 4.64$/bbl