Crude Holds Steady Ahead of JMMC and US Inventory Data

Crude is holding steady with Brent just below 91$/bbl ahead of the JMMC meeting and the updated US oil inventory data both due today.

• Brent DEC 23 down -0.3% at 90.61$/bbl
• WTI NOV 23 down -0.4% at 88.85$/bbl
• Gasoil OCT 23 down -0.1% at 949.75$/mt
• WTI-Brent down -0.09$/bbl at -3.51$/bbl
• The Joint Ministerial Monitoring Committee (JMMC) meets today but no changes in policy are expected with the OPEC+ group seemingly intent on tightening the market into Q4.
• In the last week crude markets have traded lower with pressure from a stronger US dollar and concerns for higher for longer central bank interest rates but a market deficit is still widely expected in Q4 amid tight supplies and inventories drawdowns. API data last night suggested another crude draw although little change is expected in the EIA stocks, and Cushing stocks are expected to see a small gain on the week.
  • Brent DEC 23-JAN 24 down -0.01$/bbl at 1.72$/bbl
  • Brent DEC 23-DEC 24 down -0.23$/bbl at 8.53$/bbl
• Crude backwardation remains strong with both the prompt and Dec23-Dec24 spreads regaining ground yesterday and reflecting the tight global supplies.
• Russia is considering allowing partial diesel exports from a lift of its export ban for producers with an announcement likely in the next few days according to Kommersant.
• Diesel markets have followed the wider market correction in the last week weighing the impact of the Russian fuel export ban against recent high Asian exports and with economic concerns. Gasoline cracks continue to trend lower on weak demand and building stocks.
  • US gasoline crack down -0.1$/bbl at 8.68$/bbl
  • US ULSD crack down -0.5$/bbl at 44.01$/bbl