Crude Holding Above Previous Close Amid Calmer Financial Market

Crude is holding above the previous close levels after recovering up from a low of 72.72$/bbl during the day on Friday amid the banking sector and financial market uncertainty. Future global oil demand growth remains uncertain with recession fears amid resilient inflation and central bank rate hikes. Robust Russian output despite production cuts is also adding to the bearish pressure with no reaction to the lower prices from OPEC or to the US policy to restock the SPR.

• Brent MAY 23 up 0.9% at 75.69$/bbl
• WTI MAY 23 up 1% at 69.98$/bbl
• Gasoil APR 23 up 0.9% at 772$/mt
• WTI-Brent up 0.02$/bbl at -5.74$/bbl
• The Brent crude curve is in backwardation but softer than earlier this month with the focus on economic concerns and global oil demand and resilient Russian oil output rather than optimism over the recovery in China which is widely expected in the second half of this year. Dec23-Dec24 remains near the recent lows after recovering from the lowest since Dec2021 last week. The prompt WTI spread suggests plenty of supply available to cover demand in the near term.
  • Brent MAY 23-JUN 23 up 0.01$/bbl at 0.41$/bbl
  • Brent JUN 23-DEC 23 up 0.11$/bbl at 1.44$/bbl
  • Brent DEC 23-DEC 24 up 0.31$/bbl at 2.66$/bbl
• Diesel and gasoline cracks spreads are slightly softer today with restricted fuel supplies in Europe due to French strikes and Russian sanctions still adding to the tight near term concerns to offset wider market demand uncertainty. Gasoline margins are near the highest since Jul 2022 in the run up towards the summer driving season and with the switch to summer grade gasoline. Prices are also supported by a gradual rebound in US gasoline demand, below normal US inventories.
  • US gasoline crack down -0.2$/bbl at 37.51$/bbl
  • US ULSD crack down -0.5$/bbl at 38.84$/bbl