Crude Futures and Spreads Holding Onto Weekly Gains

Crude is trading just above the previous close and holding in an 83.5$/bbl to 86.0$/bbl range this week since the OPEC production cut announcement on Sunday. Brent remains over 6% higher than the close from Friday last week.

• Brent JUN 23 up 0.6% at 85.44$/bbl
• WTI MAY 23 up 0.5% at 81.12$/bbl
• Gasoil APR 23 up 2.4% at 788.75$/mt
• WTI-Brent down -0.01$/bbl at -4.3$/bbl
• A 4.3m draw in the API crude stocks and draw at Cushing in data last night has added to the price support ahead of the EIA data release later today.
• Gains yesterday were limited by a surprisingly large decline in US job openings and suggested slowdown in the labour market.
• The resumption of Kurdish oil exports through Ceyhan yesterday also helped eased some of the upside pressure on oil prices after feeding a gradual price increase last week.
  • Brent JUN 23-JUL 23 up 0.01$/bbl at 0.4$/bbl
  • Brent JUN 23-DEC 23 up 0.08$/bbl at 3.55$/bbl
  • Brent DEC 23-DEC 24 up 0.1$/bbl at 5.73$/bbl
• The increase in crude time spreads this week reflects the tight market concerns with analysts expecting a market deficit in the second half of this year due to China growth, falling Russia supply, and limited upside to US supply. Brent Dec23-Dec24 is trading just below the highest since November seen yesterday at 5.94$/bbl.
• Diesel and gasoline spreads remain unchanged from yesterday with weak demand, refineries returning from maintenance and robust Russian output weighing on the spreads. The US diesel crack has pulled back from a high of around 47.4$/bbl and gasoline down from 39.4$/bbl in March.
  • US gasoline crack up 0.1$/bbl at 34.79$/bbl
  • US ULSD crack down -0.1$/bbl at 31.91$/bbl