Crude Futures and Spreads Extend Decline

Crude extends decline and time spreads fall as the market considers the impact of the EU proposed oil price cap details. More covid related lockdown restrictions in China are adding to the downside pressures with concerns for the impact on oil demand.

• Other than the dip lower earlier this week caused by the production increase later denied by OPEC, the Jun23-Dec23 and Dec23-Dec24 spreads are now the lowest since late September.
• The front month WTI-Brent spread has closed in from -8.5$/bbl late last week to 7.1$/bbl today.
  • Brent JAN 23 down -3.2% at 85.54$/bbl
  • WTI JAN 23 down -3.1% at 78.43$/bbl
  • WTI-Brent up 0.21$/bbl at -7.12$/bbl
  • Brent JAN 23-FEB 23 down -0.35$/bbl at 0.31$/bbl
  • Brent JUN 23-DEC 23 down -0.39$/bbl at 2.94$/bbl
  • Brent DEC 23-DEC 24 down -0.54$/bbl at 3.89$/bbl