Crude Oil and WTI-Brent Spread Holding Gains

Crude holding onto earlier gains following the OPEC production cut announcement over the weekend. Brent has steadied around 84$/bbl while WTI is hovering just below 80$/bbl.

• The WTI-Brent front month spread narrowed to the smallest since December at -4.07$/bbl on Friday last week with the June contract spread the smallest since June 2022.
• The narrowing spread could limit the strong US exports seen this year with the front month spread trading between -7$/bbl and -5.5$/bbl for most of the year so far.
• From June onwards oil from the Permian will be added to the grades used to set the Dated benchmark by Platts due to declining tradeable oil in the existing benchmark grades.
• The ongoing French refinery strikes are adding to the move with tankers backed up off the coast of France due to reduced refinery operations.
  • Brent JUN 23 up 5.2% at 84.08$/bbl
  • WTI MAY 23 up 5.4% at 79.77$/bbl
  • WTI-Brent down -0.16$/bbl at -4.25$/bbl
  • Brent JUN 23-JUL 23 up 0.13$/bbl at 0.29$/bbl
  • Brent JUN 23-DEC 23 up 0.99$/bbl at 2.97$/bbl
  • Brent DEC 23-DEC 24 up 1.07$/bbl at 4.87$/bbl