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Crude Recovers Ground After Earlier Dip

OIL

Crude is trading back up to levels from earlier today after a dip down to a low of 83.77$/bbl. Front month remains within the range seen so far this month with concern for weak global demand offsetting upside supply pressures.

  • Uncertainty remains over the compliance with current production cut targets from Russia and from OPEC starting next month. On the demand side the speed of recovery in China is still unclear and there is uncertainty over global demand with expectations that the US Fed may be getting closer to ending its rate hike cycle.
  • The latest monthly reports from EIA today and OPEC and IEA later in the week will be in focus as the market looks for clues on the future supply demand balance. US CPI data due out tomorrow could impact the future US Fed policy.
    • Brent JUN 23 up 0.9% at 84.95$/bbl
    • WTI MAY 23 up 1.3% at 80.76$/bbl
    • Brent JUN 23-JUL 23 unchanged at 0.39$/bbl
    • Brent JUN 23-DEC 23 unchanged at 3.37$/bbl
    • Brent DEC 23-DEC 24 up 0.02$/bbl at 5.4$/bbl

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