Crude Holding Gains After Three Week Rally

Crude futures are holding steady after seeing a steady rally for much of the month. The upside has been driven by anticipation of supply disruption from Russia and a boost to demand this year as China reopens. Recession and global economic fears continue to weigh on the market although the potential end to central banks rate tightening this year could help the demand recovery.

• Brent MAR 23 down -0.2% at 88.05$/bbl
• WTI MAR 23 up 0% at 81.64$/bbl
• Gasoil FEB 23 down -0.1% at 1011.5$/mt
• WTI-Brent up 0.02$/bbl at -6.41$/bbl
• The potential for lower Russian output has driven Brent up faster than WTI with the Brent premium increasing from around 6$/bbl to 6.5$/bbl yesterday. Russia's seaborne crude exports declined last week by 820kbpd, or 22%, to 2.98mbpd last week, giving up most of the previous week’s gain.
• The prompt time spread is now in backwardation for the first time since the start of the year and longer dated spreads are near the highest levels since mid November due to the Russian supply concerns.
  • Brent MAR 23-APR 23 up 0.02$/bbl at 0.05$/bbl
  • Brent JUN 23-DEC 23 down -0.03$/bbl at 3.01$/bbl
• Gasoil strengthens as French refinery strikes add to tight market concerns ahead of the EU ban on Russian oil product supplies. Front month Gasoil is extending the recent rally to trade above 1000$/mt and the highest since early November. French CGT union strikes in the coming weeks are adding to tight market concerns while diesel and gasoline cracks spreads also continue to rally.
  • US gasoline crack down -0.2$/bbl at 31.3$/bbl
  • US ULSD crack up 0$/bbl at 62.64$/bbl