Crude Pulls Back Amid Broader Risk Appetite Weakness

Crude is drifting down today towards the lows from yesterday amid broader risk appetite weakness and concerns that demand growth could be limited by major central banks keeping interest rates higher for longer. A stronger US dollar is helping to offset the strength from tight supplies and low inventories.

• Brent NOV 23 down -1% at 92.37$/bbl
• WTI NOV 23 down -1% at 88.78$/bbl
• Gasoil OCT 23 down -1.4% at 951.5$/mt
• WTI-Brent down -0.16$/bbl at -3.59$/bbl
• The market impact of Russian diesel and gasoline exports ban appears to be relatively limited after Russia yesterday added some exclusions to the ban and with the measure generally expected to be fairly short lived.
• Future demand remains uncertain, but the expectation of better economic data from China this week could help further support the market ahead of a potential demand boost from the Golden Week holiday.
  • Brent NOV 23-DEC 23 down -0.03$/bbl at 1.38$/bbl
  • Brent DEC 23-DEC 24 down -0.48$/bbl at 8.68$/bbl
• Longer term crude time spreads are following the front month back down from the highs of yesterday but the near term prompt spreads remain strong after surging to the highest since November 2022.
• WTI-Brent has narrowed this week to a peak of -3.2$/bbl yesterday with support from the ever decrease levels of Cushing storage.
• Diesel and gasoline spread are pulling back to the lows from early in September with demand concerns adding to strong exports from China and India this month to offset the support from low inventories and refinery maintenance.
  • US gasoline crack up 0.2$/bbl at 15.17$/bbl
  • US ULSD crack down -0.5$/bbl at 44.08$/bbl