Crude Markets Reversing Slightly

Crude markets are reversing some of this week’s gains, but tightness fears are limiting the downside so far.

• The weaker US dollar and better market sentiment lent buoyancy to crude oil prices at the start of the week Commerzbank said in a Tuesday note.
• Saudi Arabia has fallen short of providing any sentiment of higher output but there are still hopes by the US that OPEC+ will commit to high production capacity.
• Libyan oil has been a positive for the market with early signs of returning to 1.2mn bpd in the short-term gaining momentum as force majeure is lifted at key ports. US shale production is also soaring - set to surpass 9 million barrels per day for the first time since March 2020, in August.
• Brent SEP 22 down -1% at 105.16$/bbl
• WTI AUG 22 down -0.9% at 101.63$/bbl
• WTI-Brent down -0.03$/bbl at -6.81$/bbl
• Brent SEP 22-OCT 22 unchanged at 4.41$/bbl
• Brent DEC 22-DEC 23 down -0.32$/bbl at 9.75$/bbl