Crude Holding Steady Amid Tight Market Supplies

Crude is holding onto gains seen last week with Brent up about 14$/bbl since late June supported by Saudi and Russian production cuts, easing concerns over a possible US recession and further stimulus measures boosting demand in China.

• Brent OCT 23 down -0.2% at 86.03$/bbl
• WTI SEP 23 down -0.2% at 82.62$/bbl
• Gasoil AUG 23 up 0.1% at 904.75$/mt
• WTI-Brent down -0.01$/bbl at -3.97$/bbl
• On Saturday, Saudi Arabia raised nearly all official selling prices to Asia and Europe for September with Arab Light crude to Asia up 0.3$/bbl compared to estimations of an increase of 0.5$/bbl.
• Rising tensions in the Black Sea increase the risk to Russian shipments after a drone hit a Russian tanker over the weekend. A total of 15-20% of Russian crude shipments go through the Black Sea and most of its grain according to Bloomberg.
• Poland has stopped oil through part of a western section of the Druzhba pipeline after a leak late on Saturday. Crude flows are expected to resume on Tuesday morning.
  • Brent OCT 23-NOV 23 up 0.01$/bbl at 0.47$/bbl
  • Brent DEC 23-DEC 24 down -0.03$/bbl at 5.09$/bbl
• A tight market and potential deficit this year is reflected in the strong curve backwardation with prompt and longer dated spreads holding onto gains seen in recent weeks.
• Diesel and gasoline crack spreads are holding steady today after last week saw gasoline cracks ease lower following weak demand concerns. Diesel markets are maintaining recent strength support by tight supplies, recent refinery disruptions and low global inventories.
  • US gasoline crack up 0.1$/bbl at 34.29$/bbl
  • US ULSD crack up 0.1$/bbl at 46.16$/bbl