Crude Holding Narrow Backwardation With Demand Concern but Tighter Supply

Crude backwardation remains narrow reflecting the downside pressure from US recessionary concerns and weaker global oil demand growth despite OPEC production cuts and supply including outages from Kurdistan and Canada

• The Jul-Aug Brent spread is today falling towards the lows of 0.12$/bbl from last week and the lowest since December. The spread reached a high of 0.73$/bbl on 12 April.
• The Dec23-Dec24 Brent spread is slightly stronger than the prompt and above the recent lows but still near the lower end of the range seen so far this year.
• EIA said that ongoing considerations about weakening global economic conditions, perceived risk around the global banking sector, and persistent inflation have recently outweighed the 1.2mb/d OPEC production cut announcement.
  • Brent JUL 23 down -1.4% at 76.34$/bbl
  • WTI JUN 23 down -1.4% at 72.65$/bbl
  • Brent JUL 23-AUG 23 down -0.02$/bbl at 0.15$/bbl
  • Brent DEC 23-DEC 24 down -0.24$/bbl at 2.92$/bbl
  • WTI JUN 23-JUL 23 down -0.03$/bbl at 0.06$/bbl
  • WTI JUN 23-DEC 23 down -0.11$/bbl at 1.85$/bbl
  • WTI DEC 23-DEC 24 down -0.2$/bbl at 3.37$/bbl