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Crude Lower on Recession and China Demand Concerns

OIL

Crude drifting lower on oil demand growth concerns and weak oil demand from China while tight supplies maintain strong backwardation.

  • The market is on course for a 5% fall this week as the impact from the 2mbpd OPEC+ production cut announced earlier in the month has subsided. The real cut is likely to be approximately 1mbpd due to OPEC member underproduction according to IEA estimates.
  • IEA, EIA, and OPEC all cut their global oil demand forecasts in monthly reports this week.
    • Brent DEC 22 down -1% at 93.6$/bbl
    • WTI NOV 22 down -1% at 88.19$/bbl
    • WTI-Brent up 0.1$/bbl at -6.59$/bbl
    • Brent DEC 22-JAN 23 down -0.03$/bbl at 1.62$/bbl
    • Brent JAN 23-FEB 23 down -0.01$/bbl at 1.7$/bbl
    • Brent DEC 22-DEC 23 down -0.25$/bbl at 12.5$/bbl

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