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Crude Recovers With Economic Concern Weighed Against OPEC Output

OIL

Crude prices are edging back up as the market assess lower OPEC production in the second half of 2023 and in 2024 against economic driven demand fears in US and China.

  • Front month Brent has rallied from a low of 74.74$/bbl earlier today but remains negative on the day with prices near to levels seen on Friday before the OPEC meeting.
  • Crude time spreads are back near to flat on the day with stronger backwardation supported by the latest Saudi voluntary production cut and the adjusted OPEC quotas form next year.
  • The latest monthly EIA Short Term Energy Outlook is due out later today and China May trade data is out tomorrow as the market watches for a slowing in export growth following the previous weaker official manufacturing PMI data.
    • Brent AUG 23 down -0.3% at 76.45$/bbl
    • WTI JUL 23 down -0.2% at 72$/bbl
    • WTI-Brent up 0.13$/bbl at -4.34$/bbl
    • Brent AUG 23-SEP 23 down -0.04$/bbl at 0.2$/bbl
    • Brent DEC 23-DEC 24 up 0.02$/bbl at 3.58$/bbl
    • WTI JUL 23-AUG 23 unchanged at -0.11$/bbl
    • WTI DEC 23-DEC 24 up 0.05$/bbl at 3.9$/bbl

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