Crude Futures and Spreads Ease Back Off from the Daily Highs

Crude futures and time spreads drift down near to flat on the day suggesting the market considers the wider market impact of Russian diesel and gasoline exports ban to be relatively limited with the measure generally expected to be fairly short lived.

• Front month Brent has been holding within a 92.3$/bbl to 94.5$/bbl range since the slight technical driven pullback from a peak of around 95.9$/bbl on 19 Sep.
• Future demand remains uncertain, but optimism is continuing to add to market support ahead of economic data from China due out later this week and with the possibility of the 100$/bbl psychological handle in focus. The expectation of better economic data from China this week could help further support the market ahead of the Golden Week holiday.
• The prompt Brent spread has pulled back from a peak of 1.53$/bbl earlier today which was the highest since November 2022.
• WTI-Brent narrowed to as high as -3.2$/bbl earlier today with support from the ever decrease levels of Cushing storage which could be falling towards the minimum operation levels for the facility
  • Brent NOV 23 down -0.1% at 93.16$/bbl
  • WTI NOV 23 down -0.4% at 89.68$/bbl
  • WTI-Brent down -0.21$/bbl at -3.47$/bbl
  • Brent NOV 23-DEC 23 up 0.05$/bbl at 1.36$/bbl
  • Brent DEC 23-DEC 24 down -0.17$/bbl at 9.15$/bbl
  • WTI NOV 23-DEC 23 down -0.08$/bbl at 1.6$/bbl
  • WTI DEC 23-DEC 24 down -0.24$/bbl at 10.03$/bbl