Crude Recovers After Briefly Testing Yesterday's Low

Crude futures are recovering after briefly falling back negative on the day. The WTI Dec23 contract fell towards the lows from yesterday of 81.82$/bbl assisted by strength in the US dollar.

• Time spreads are softening today with crude flows so far unchanged despite the risk from an escalation to the conflict in Israel.
• Demand uncertainty is limiting any upside market moves after disappointing China Manufacturing PMI data and with concern for future potential US rate hikes next year ahead of the Fed meeting tomorrow.

• The medium-term trend condition is unchanged and remains bullish and the recent move lower appears to be a correction. WTI Dec23 key support is at 6 Oct low of 80.20$/bbl and resistance at 27 Oct high of 85.90$/bbl.
  • Brent JAN 24 up 0.5% at 86.76$/bbl
  • WTI DEC 23 up 0.5% at 82.73$/bbl
  • Brent JAN 24-FEB 24 down -0.05$/bbl at 0.68$/bbl
  • Brent JUN 24-DEC 24 up 0.06$/bbl at 2.47$/bbl
  • WTI DEC 23-JAN 24 down -0.04$/bbl at 0.59$/bbl
  • WTI DEC 23-DEC 24 down -0.11$/bbl at 5.97$/bbl