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Crude Falls on Demand Concerns and Backwardation Softens

OIL

Crude is trading back towards the lower end of the recent range with demand concerns overriding supply risks.

  • Time spreads are also softer and pulling back from high levels yesterday.
  • WTI-Brent spread has gradually fallen over the last week and now trading as wide as -8.5$/bbl. WTI is lower than Brent with concerns over the US economic growth and with ongoing pressure from the SPR withdrawals.
    • Brent DEC 22 down -1.4% at 91.98$/bbl
    • WTI DEC 22 down -1.3% at 83.44$/bbl
    • WTI-Brent up 0.04$/bbl at -8.54$/bbl
    • Brent DEC 22-JAN 23 down -0.15$/bbl at 1.9$/bbl
    • Brent JAN 23-FEB 23 down -0.1$/bbl at 1.68$/bbl
    • Brent DEC 22-DEC 23 down -0.61$/bbl at 11.81$/bbl

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