Crude Prices Flat After Yesterday's Rally

Oil prices are flat this morning, holding yesterday’s gains that saw WTI rally 5% and hold above $100/bbl as supply fears overtook market sentiment that was driven by recession fears last week. WTI faced support as Gulf nations show little sign of committing to higher output after Biden’s visit to the Middle East and disruption along the Keystone pipeline cut some Canadian oil to US refiners.

• Brent SEP 22 down -0.4% at 105.83$/bbl,
• WTI AUG 22 down -0.3% at 102.31$/bbl
• Gasoil AUG 22 down -3.6% at 1074.75$/mt
• WTI-Brent down -0.05$/bbl at -6.83$/bbl
• Crude markets will continue to weigh up recession fears and signs that demand is dropping. Despite global slowdown concerns, oil markets remain steeply backwardated against a tight physical market. Brents prompt spread was up over $4.43 a barrel, $1 higher than a week again.
• Brent SEP 22-OCT 22 up 0.04$/bbl at 4.45$/bbl
• Brent DEC 22-DEC 23 down -0.03$/bbl at 10.04$/bbl
• US gasoline and diesel cracks still face weakness against signs that demand has been dropping off because of higher prices. All eyes will be on tomorrows EIA report to see if weak product supplied figures develop into a longer-term trend or if last weeks figures were a blip.
• US gasoline crack up 0.5$/bbl at 35.14$/bbl,
• US ULSD crack down -0.8$/bbl at 49.48$/bbl