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Crude Pulls Back to Lows From Friday Amid Stronger USD

OIL

Front month Brent falls back to the lows from Friday driven by demand uncertainty and a stronger US dollar after US payrolls data last week prompted Fed repricing suggesting lower rates cuts this year.

  • The return of strong US supply following cold weather disruption in Jan and limited compliance with production cut target from some OPEC members also weighs on prices to offset geopolitical risks.
  • The crude curve backwardation is also softening again today with the WTI Jun-Dec spread to the lowest since Jan 17 while the WTI prompt spread extends the narrow contango.
  • Technicals show a bear threat remains present and a continuation would signal scope for Brent Apr 24 contract weakness towards $76.13/bbl.
    • Brent APR 24 down -0.4% at 77.02$/bbl
    • WTI MAR 24 down -0.6% at 71.88$/bbl
    • WTI-Brent down -0.01$/bbl at -5.08$/bbl
    • Brent APR 24-MAY 24 down -0.04$/bbl at 0.22$/bbl
    • Brent JUN 24-DEC 24 down -0.15$/bbl at 1.93$/bbl
    • WTI MAR 24-APR 24 down -0.05$/bbl at -0.07$/bbl
    • WTI JUN 24-DEC 24 down -0.18$/bbl at 1.85$/bbl
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Front month Brent falls back to the lows from Friday driven by demand uncertainty and a stronger US dollar after US payrolls data last week prompted Fed repricing suggesting lower rates cuts this year.

  • The return of strong US supply following cold weather disruption in Jan and limited compliance with production cut target from some OPEC members also weighs on prices to offset geopolitical risks.
  • The crude curve backwardation is also softening again today with the WTI Jun-Dec spread to the lowest since Jan 17 while the WTI prompt spread extends the narrow contango.
  • Technicals show a bear threat remains present and a continuation would signal scope for Brent Apr 24 contract weakness towards $76.13/bbl.
    • Brent APR 24 down -0.4% at 77.02$/bbl
    • WTI MAR 24 down -0.6% at 71.88$/bbl
    • WTI-Brent down -0.01$/bbl at -5.08$/bbl
    • Brent APR 24-MAY 24 down -0.04$/bbl at 0.22$/bbl
    • Brent JUN 24-DEC 24 down -0.15$/bbl at 1.93$/bbl
    • WTI MAR 24-APR 24 down -0.05$/bbl at -0.07$/bbl
    • WTI JUN 24-DEC 24 down -0.18$/bbl at 1.85$/bbl