Crude Holding Steady as US to Fulfil Congress-Mandated SPR Sales

Crude is holding just below the previous close supported by an expected recovery in Chinese oil demand and the potential for a US and Europe economic recovery this year. The latest US CPI data for January is due for release later today.

• Brent APR 23 down -0.5% at 86.19$/bbl
• WTI MAR 23 down -0.9% at 79.42$/bbl
• Gasoil MAR 23 up 0.7% at 846.75$/mt
• WTI-Brent down -0.12$/bbl at -6.55$/bbl
• The US plans to fulfil the congress-mandated SPR sales of 26mbbls planned for FY 2023 to the end of September. Congress previously cancelled 140mn barrels of required sales last year for the four fiscal years starting in Oct 2023 at the administration's request. The withdrawals will take the total strategic reserves down to about 345mbbls.
• The plans announced by Russian last week to cut March oil output as a response to Western sanctions is providing support with time spreads holding relatively flat so far this week. The prompt spread is trading just below the highest since November reached on Friday.

• Brent APR 23-MAY 23 up 0.01$/bbl at 0.39$/bbl
• Brent JUN 23-DEC 23 down -0.13$/bbl at 2.97$/bbl
• Diesel and gasoline crack spreads have seen support over the last week due to supply uncertainty, the US refinery maintenance season and cautious demand optimism for this year after gradually falling since mid January. Spreads declined due to weak demand, building distillate storage levels in Europe and higher than expected Russian output.
  • US gasoline crack down -0.1$/bbl at 26.33$/bbl
  • US ULSD crack up 0.7$/bbl at 42.68$/bbl