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Crude Pulls Back Towards Technical Support Level

OIL

Crude futures are falling back towards technical support levels while backwardation softens. Moves are driven by bearish sentiment around demand outlooks in the US and China combined with strong non-OPEC supply and mixed OPEC+ member compliance with pledged cuts.

  • Crude time spreads are following the front month decline with the prompt Brent spread today falling to the lowest since Feb. 12. The decline in the longer dated Jun24- Dec24 spread has been more muted.
  • Technicals shows the Brent initial pivot support at the 50 day EMA at 80.89$/bbl and WTI at 76.45$/bbl.
    • Brent MAY 24 down -1% at 81.24$/bbl
    • WTI APR 24 down -1.3% at 76.98$/bbl
    • WTI-Brent down -0.06$/bbl at -4.63$/bbl
    • Brent MAY 24-JUN 24 down -0.09$/bbl at 0.48$/bbl
    • Brent JUN 24-DEC 24 down -0.17$/bbl at 3.33$/bbl
    • WTI APR 24-MAY 24 down -0.12$/bbl at 0.39$/bbl
    • WTI JUN 24-DEC 24 down -0.21$/bbl at 3.31$/bbl

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