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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Crude rallied to the highest since the start of March after an unexpected fall in US crude inventories at Cushing. Prices have eased back slightly this morning.
- Brent AUG 22 down -0.2% at 123.33$/bbl
- WTI JUL 22 down -0.3% at 121.8$/bbl
- Gasoil JUN 22 down -0.9% at 1328.25$/mt
- WTI-Brent down -0.07$/bbl at -3.84$/bbl
- EIA reported that stocks at Cushing fell by 1.59mbbls while overall crude stocks also remain well below normal despite showing a 2mbbl build as expected. The WTI-Brent spread widened as WTI reacted faster than Brent.
- Supply concerns continue to underline the bullish sentiment in the market with Russian output expected to fall further. OPEC members have limited spare capacity with Saudi Arabia and UAE unlikely to independently raised production and we are not yet seeing any significant increases from the US drillers.
- On the demand side, the prospect of higher oil demand from China as they emerge from Covid restrictions is also adding to the upward price pressure.
- Oil product prices were slower to react than crude resulting in a fall in crack spreads but gasoline and diesel stocks remain low with tight supply.
- Crude spreads followed the futures higher as the curve remains firmly backwardated.
- Brent AUG 22-SEP 22 down -0.04$/bbl at 2.65$/bbl
- Brent DEC 22-DEC 23 down -0.11$/bbl at 16.39$/bbl
Source: MNI / EIA
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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