Free Trial

Crude Holding with OPEC Cut Balanced Against Demand Concerns

OIL

Crude is unchanged today as the market weighs up the impact of the OPEC production cut and any possible reaction from US against the ongoing economic driven demand concerns.

    • Brent DEC 22 down -0.2% at 94.24$/bbl
    • WTI NOV 22 down -0.2% at 88.26$/bbl
    • Gasoil OCT 22 up 1.7% at 1205.75$/mt
    • WTI-Brent down -0.08$/bbl at -6.85$/bbl
  • US is considering a response to the OPEC cuts from earlier in the week with possible options of an extra SPR release and restrictions on US exports. US had hoped to persuade Saudi Arabia and OPEC to resist cutting production and supporting prices at a time when the US is still struggling with the economic impact of high inflation.
    • Brent DEC 22-JAN 23 down -0.03$/bbl at 1.72$/bbl
    • Brent DEC 22-DEC 23 down -0.22$/bbl at 11.83$/bbl
  • Crude time spreads are holding strong curve backwardation with tight supplies from the OPEC+ cut and from OPEC+ member underproduction. The US led price cap on Russia oil could add to the market tightness with Russia reiterating this week that it won’t supply fuel to countries that implement a fuel cap.
    • US gasoline crack up 0.4$/bbl at 24.6$/bbl
    • US ULSD crack up 0.2$/bbl at 74.34$/bbl
  • Tight diesel supply in Europe due to refinery maintenance, French strikes and declining Russian supplies continue to support Gasoil spreads. The prompt Gasoil time spread is still up above 90$/mt. Gasoline and diesel crack spreads are gradually edging higher with a slight recover in EIA demand data earlier this week adding to the support.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.