Crude Recovering after Weekly Drop

Crude is recovering slowly this morning after falling over $9/bbl so far this week due to future oil demand concerns and slight easing of supply.

• Brent front month this week reach the lowest levels since Feb on recession fears and as high fuel prices are reducing summer demand below normal. US gasoline and distillate demand both fell this week with the rolling 4- week average gasoline demand now back below the 5-year range.
  • Brent OCT 22 up 0.6% at 94.65$/bbl
  • WTI SEP 22 up 0.7% at 89.19$/bbl
  • Gasoil AUG 22 up 0% at 1009.25$/mt
  • WTI-Brent up 0.07$/bbl at -6.45$/bbl
• The return of Libya production earlier in the week has helped to ease the tight supply picture as time spreads pulled back. Yesterday and this morning have found some support after OPEC+ announce only a very small increase in production and warned of limited spare capacity.
  • Brent OCT 22-NOV 22 up 0.03$/bbl at 1.65$/bbl
  • Brent DEC 22-DEC 23 up 0.16$/bbl at 7.28$/bbl
• Gasoline crack spreads have continued the downward trend all week on the lower demand due to high prices. Diesel spreads have found some support with supply still tight and with US and European stocks still well below the normal range. A fall in US fuel pump prices over the last few weeks has not yet been reflected in any pick up in demand data.
  • US gasoline crack down -0.1$/bbl at 28.25$/bbl
  • US ULSD crack down 0$/bbl at 50.25$/bbl