Crude Rangebound Amid Supply and Demand Uncertainty

Crude futures and time spreads are regaining ground slightly after drifting down towards the lows from yesterday. Brent front month has been holding between about 86.5$/bbl and 88.5$/bbl since the rally at the start of the week.

• The prompt time spread is falling towards the lows from last week with concern for demand offsetting supply risks with no immediate impact on supplies from the Israel conflict.
• The longer term Dec-Dec24 spread has also pulled back to levels seen on Friday.
• The Brent Dec23 contract bear cycle remains in play after breaking the 50-day EMA at 87.43$/bbl last week. First Brent resistance is at the 20 day EMA of 89.96$/bbl with support down at the 5 Oct low of 83.84$/bbl.
  • Brent DEC 23 down -0.4% at 87.34$/bbl
  • WTI NOV 23 down -0.5% at 85.56$/bbl
  • WTI-Brent up 0.06$/bbl at -3.51$/bbl
  • Brent DEC 23-JAN 24 down -0.13$/bbl at 1.29$/bbl
  • Brent DEC 23-DEC 24 down -0.34$/bbl at 7.25$/bbl
  • WTI NOV 23-DEC 23 down -0.11$/bbl at 1.73$/bbl
  • WTI DEC 23-JAN 24 down -0.15$/bbl at 1.41$/bbl
  • WTI DEC 23-DEC 24 down -0.32$/bbl at 8.16$/bbl