Crude Soft with Focus on Demand Concerns

Crude futures and spreads are holding onto the weekly losses with Brent front month having fallen from a peak of 86.7$/bl on 7 March. Global oil demand growth remains a concern with risks from the US central bank tightening policy. The updated US payrolls data is due out shortly.

• Key technical support for May23 Brent is at the Feb23 Low of 80.25$/bbl and Apr23 WTI at 73.80$/bbl.
• The crude backwardation continues to soften as the Jun23-Dec2 and Dec23-Dec24 spreads have also declined this week. The Brent prompt spread remains supported by near term supply concerns with a Russian production cut in March.
• The second month Brent call-put skew is also moving more bearish and down to -5.2% from around -2.8% at the start of the week.
  • Brent MAY 23 down -0.8% at 80.93$/bbl
  • WTI APR 23 down -1% at 74.96$/bbl
  • WTI-Brent down -0.06$/bbl at -5.82$/bbl
  • Brent MAY 23-JUN 23 down -0.02$/bbl at 0.48$/bbl
  • Brent JUN 23-DEC 23 down -0.1$/bbl at 2.32$/bbl
  • Brent DEC 23-DEC 24 down -0.2$/bbl at 4.01$/bbl