Crude Futures and Spreads Extend Gains After IEA Report

Crude front month extends gains trading through technical resistance levels as IEA suggest oil markets face a supply deficit due to the OPEC+ cuts. The report adds to earlier price support from drone attacks on Russian refineries and an unexpected draw in US crude stocks yesterday.

• The IEA also raised its oil demand growth forecast for this year but suggested a full unwind of current OPEC+ production cuts from July could return the market to surplus in H2.
• Crude time spreads are following the move higher with both prompt spreads and the Jun24-Dec24 spreads regaining some of the losses from last week.
• Brent technicals suggest a break higher could signal a resumption of the bull cycle that has been in place since Dec 13, with next resistance at a Fibonacci retracement point at $85.47/bbl. The WTI resistance is at the Fibonacci retracement point of $81.70/bbl.
  • Brent MAY 24 up 0.8% at 84.74$/bbl
  • WTI APR 24 up 0.9% at 80.45$/bbl
  • WTI-Brent down 0.02$/bbl at -4.77$/bbl
  • Brent MAY 24-JUN 24 up 0.13$/bbl at 0.72$/bbl
  • Brent JUN 24-DEC 24 up 0.22$/bbl at 3.97$/bbl
  • WTI APR 24-MAY 24 up 0.07$/bbl at 0.49$/bbl
  • WTI JUN 24-DEC 24 up 0.21$/bbl at 3.91$/bbl