Crude recovers after 3$/bbl fall

Oil fell nearly 3$/bbl yesterday as Brent continues to bounce within the recent range.

• Brent JUL 22 up 1.2% at 110.46$/bbl
• WTI JUN 22 up 0.6% at 110.29$/bbl
• Gasoil JUN 22 down -0.1% at 1046.75$/mt
• WTI-Brent down -0.03$/bbl at -2.5$/bbl
• Expectation for Chinese demand fell after Beijing reported more new covid cases and put another area in to lockdown. Chinese data showed that crude throughput dropped 11.6% in April to March to a 2 year low as product consumption has been impacted by the country’s strict covid policy. Reduced Chinese demand expectations combined with a wider equities selloff to push crude prices lower.
• The weekly EIA data showed draws in crude and gasoline as oil supply remains tight especially in gasoline. US product demand is expected to pick up as we approach the US driving season.
• The tight supply is maintaining the crude curve backwardation with front spreads near the highest since March.
• Brent JUL 22-AUG 22 down -0.03$/bbl at 2.15$/bbl
• Brent DEC 22-DEC 23 up 0.34$/bbl at 11.48$/bbl