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Crude Losing Previous Gains on Demand Concern


Crude losing gains made on Friday last week on the back of concerns for oil demand due to the weak global economy and after mixed data from China.

  • Brent DEC 22 down -0.9% at 92.67$/bbl
  • WTI DEC 22 down -1% at 84.19$/bbl
  • Gasoil NOV 22 up 1.9% at 1070.25$/mt
  • WTI-Brent down -0.1$/bbl at -8.48$/bbl
  • China data showed rising unemployment, weaker retail sales but a pickup in growth as crude imports increase with the return of refineries from maintenance. Oil product exports also increased after the allocation of new export quotas as China aims to help revive economic growth.
  • Tight global supplies continue to limit market downside and support time spreads with the curve still in strong backwardation. The spreads are trading near the highest since July although are softer today following the fall in outright crude. Supply remains tight with uncertainty over Russia supplies and reduced OPEC+ production targets despite the ongoing SPR release from US.
  • Brent DEC 22-JAN 23 up 0.01$/bbl at 2.17$/bbl
  • Brent JAN 23-FEB 23 down -0.02$/bbl at 1.87$/bbl
  • Brent DEC 22-DEC 23 down -0.28$/bbl at 12.51$/bbl
  • Diesel spreads eased last week as the fuel supply issues in France improve with the return of some of the French refineries following the workers strikes. Tight global supplies due to refinery maintenance, lower flows from Russia and the upcoming heating season and are supporting diesel markets. The crack spreads still elevated compared to start of the year levels despite the pull back last week.
  • US 321 crack up 0.6$/bbl at 33.99$/bbl
  • US gasoline crack down -0.4$/bbl at 18.46$/bbl
  • US ULSD crack up 1.1$/bbl at 65.02$/bbl

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