Crude Fall Continues

Crude has seen further declines after previously recouping some losses, as economic concerns and possible future interest rate rises create a bleaker picture for demand.

• Concerns around demand are overshadowing the ongoing tight supplies due to OPEC cuts until year end.
• Weak US gasoline demand and signs that Russia may start to ease its fuel export ban soon are adding to the downward pressure.
• A sharp sell-off in Brent futures yesterday resulted in a break of support of the 50-day EMA and levels are now at the psychological support level of 85$/bbl for the first time since 28 August.
• The WTI-Brent spread has narrowed to -3.24$/bbl with the US economic concerns adding to the support from low inventories at Cushing despite the small gain this week.
• Crude time spreads are following the flat price move, but the prompt remains above the low of 1.44$/bbl from earlier this week.
• WTI NOV 23 down -1.7% at 82.77$/bbl
• WTI-Brent up 0.03$/bbl at -3.28$/bbl
• WTI NOV 23-DEC 23 down -0.02$/bbl at 1.65$/bbl
• WTI DEC 23-JAN 24 down -0.12$/bbl at 1.45$/bbl
• WTI DEC 23-DEC 24 down -0.56$/bbl at 8.09$/bbl