Crude Pushing Towards Range Highs

After bouncing between 119$/bbl and 121$/bbl yesterday Brent has settled at the higher end of the range as tight fundamentals feed the bullish trend.

• Brent AUG 22 up 0.4% at 121.03$/bbl
• WTI JUL 22 up 0.5% at 120.06$/bbl
• Gasoil JUN 22 up 0.1% at 1337.5$/mt
• WTI-Brent up 0.08$/bbl at -3.26$/bbl
• The prospect of a rebound in oil demand from China and further supply disruption from Russia are adding to the bullish sentiment. Several banks have raised their price forecasts for 2022 by between 10$/bbl and 14$/bbl with estimates ranging from 95$/bbl to 135$/bbl for the balance of the year.
• EIA short term report released last night estimated that fuel output from Russia could fall 18% by the end of next year. They expect the EU sanctions on Russian seaborne oil to result in supplies falling from 11.3mbpd in Q122 to 9.3mbpd in Q423.
• Gasoline and diesel spreads pulled back yesterday from fresh high reached earlier in the day. API data release last night showed builds in the product stocks levels but with inventories so low that may only give a little respite to the bull trend. The EIA weekly inventory data will be release later today.
• Brent AUG 22-SEP 22 unchanged at 2.43$/bbl
• Brent DEC 22-DEC 23 down -0.03$/bbl at 15.89$/bbl