Crude Rebounds from Lowest Since Mid December

Crude rebounds 1$/bbl today after falling to a low of 76.96$/bbl late yesterday with the market still assessing the fallout from the collapse of Silicon Valley Bank. Concern for the impact of the financial risks and future US Feb rate hikes on global oil demand had pushed front month Brent down 7.7% this week.

• Brent MAY 23 up 1.3% at 78.45$/bbl
• WTI APR 23 up 1.3% at 72.28$/bbl
• Gasoil APR 23 down -0.6% at 798$/mt
• WTI-Brent down -0.12$/bbl at -5.98$/bbl
• Yesterday OPEC increased the oil demand growth forecast for China this year from 590kbpd to 710kbpd to help provide some support to the market. Data today showed an increase in Chinese refineries crude processing in Jan and Feb as a further sign of a recovery in economic activity.
• The Brent Dec23-Dec24 time spread followed the market decline falling towards the bottom of the range for the year and lowest since 22 Feb. The prompt Brent spread also pulled back from recent highs although remains in strong backwardation while the WTI prompt spread is still in contango.
  • Brent MAY 23-JUN 23 down -0.01$/bbl at 0.44$/bbl
  • Brent JUN 23-DEC 23 up 0.19$/bbl at 2.07$/bbl
  • Brent DEC 23-DEC 24 up 0.26$/bbl at 3.51$/bbl
• Diesel and gasoline margins continue to edge higher. Gasoline is supported by a gradual rebound in US demand this year and the switch to summer grade gasoline. The refinery maintenance season is also providing support to refined products along with lower diesel exports from Asia and Russia output uncertainty.
  • US gasoline crack up 0.7$/bbl at 36.68$/bbl
  • US ULSD crack up 0.2$/bbl at 43.17$/bbl