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Crude Resumes Climb After Initial Dip Lower in Reaction to IEA Report

OIL

Crude extends gain after an initial dip following the latest IEA monthly oil report. The IEA showed a higher demand growth forecast for 2023 before slowing in 2024 amid an increasingly adverse macroeconomic climate.

  • A potential stimulus package in China, expectation of Fed interest rate pause, and US SPR refill plans are all providing market support.
  • The WTI-Brent spread continues to decline while backwardation just edges higher.
    • Brent AUG 23 up 1.1% at 75.11$/bbl
    • WTI JUL 23 up 1% at 70.08$/bbl
    • WTI-Brent down -0.16$/bbl at -4.87$/bbl
    • Brent AUG 23-SEP 23 up 0.01$/bbl at 0.09$/bbl
    • Brent SEP 23-OCT 23 up 0.02$/bbl at 0.22$/bbl
    • Brent DEC 23-DEC 24 up 0.09$/bbl at 2.9$/bbl

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