Crude Prices Ease on Demand Concerns and More Libya Supply

Brent bounced off the 50 day moving average as it has traded between 111.66$/bbl and 114.32$/bbl today. The risks of economic slowdown continue to outweigh the global supply risks.

• On the supply side, reports that Libya’s oil production has risen over the last week to between 700kbpd and 800kbpd have taken away some upside pressure off prices. Reports earlier this month suggested output had fallen potentially as low as 100kbpd.
• Brent AUG 22 down -0.6% at 112.49$/bbl
• WTI AUG 22 down -0.4% at 107.51$/bbl
• Gasoil JUL 22 up 0.8% at 1304.5$/mt
• WTI-Brent down -0.35$/bbl at -4.99$/bbl

Crude time spreads have also traded down as the return of some supply and potential lower demand estimates could reduce the market tightness. The Dec22-Dec23 Brent spread has fallen to the lowest for a month while the front WTI spread is the lowest since 13^th May.

• Brent AUG 22-SEP 22 down -0.15$/bbl at 2.58$/bbl
• Brent DEC 22-DEC 23 down -0.51$/bbl at 11.41$/bbl
• WTI AUG 22-SEP 22 down -0.06$/bbl at 2.15$/bbl
• WTI DEC 22-DEC 23 down -0.41$/bbl at 12.07$/bbl