Crude Falls on China Demand Concerns

Crude drifting lower today on concern for demand from China after weak PMI data showing the economy contracted in October. Potential weaker oil demand growth due to central back tightening, the impact of high prices and little sign of recovery from China has kept downward pressure on prices despite tight supplies.

• Brent JAN 23 down -1.2% at 92.64$/bbl
• WTI DEC 22 down -1.2% at 86.82$/bbl
• Gasoil NOV 22 down -2% at 1110.75$/mt
• WTI-Brent up 0.04$/bbl at -7.86$/bbl
• Time spreads remain supported with supply risks from concern for Russian output with the upcoming EU ban on seaborne Russian crude and G7 oil price cap combined with the OPEC+ target output reduction for Nov and Dec. Time spreads are currently trading just below the highs for the month reached just after the OPEC cut announcement on Oct 7.
  • Brent JAN 23-FEB 23 down -0.04$/bbl at 1.87$/bbl
  • Brent FEB 23-MAR 23 down -0.04$/bbl at 1.58$/bbl
  • Brent DEC 22-DEC 23 unchanged at 12.99$/bbl
• Diesel markets remain especially tight as Gasoil time spreads continue to rally with low stocks, limited supplies due to refinery outages and concerns for reduced flow of barrels from Russia. Diesel and gasoline cracks are following the crude slightly lower today losing some of the gains from last week.
  • US 321 crack down -0.2$/bbl at 35.35$/bbl
  • US gasoline crack down -1$/bbl at 18.71$/bbl
  • US ULSD crack down -1.2$/bbl at 68.25$/bbl