Crude Stable With Global Demand Uncertainty Weighed Against OPEC Cuts

Crude remains largely unchanged today as the market assesses the future demand growth in China and US against the lower OPEC production targets and strong supplies from Russian and Iran.

• The technicals suggest the bear threat to Brent remains present with resistance at 77.15$/bbl and support down at 71.50$/bbl. WTI resistance is at 72.43$/bbl and support at 66.96$/bbl.
• The Brent and WTI Aug-Sep time spreads are holding just above parity with weak near term demand weighing on prices. The remainder of the curve is holding steady in fairly narrow backwardation.
• The front month WTI-Brent spread is at -4.7$/bbl today having bounced between -4.5$/bbl and -4.9$/bbl in the last week amid US economic concerns and building Cushing inventories.
  • Brent AUG 23 up 0.2% at 76.04$/bbl
  • WTI AUG 23 up 0.2% at 71.33$/bbl
  • WTI-Brent down -0.07$/bbl at -4.71$/bbl
  • Brent AUG 23-SEP 23 up 0.01$/bbl at 0.02$/bbl
  • Brent DEC 23-DEC 24 unchanged at 3.02$/bbl
  • WTI AUG 23-SEP 23 up 0.01$/bbl at 0.02$/bbl
  • WTI DEC 23-DEC 24 up 0.01$/bbl at 3.26$/bbl