Crude steady after rally to highest since March

Brent traded higher breaching resistance at 114$/bbl after earlier dipping on weak Chinese economic data. A potential easing of covid situation in China combined with Russia supply concerns to push markets higher.

• Brent JUL 22 down -0.2% at 114.04$/bbl
• WTI JUN 22 down -0.3% at 113.81$/bbl
• Gasoil JUN 22 down -0.2% at 1092$/mt
• There are tentative signs that the covid situation in China may be improving and that restrictions in Shanghai could start easing soon after they recorded 3 days of no new covid cases.
• Crude and especially product markets are still very tight despite lower global demand forecasts. Low stocks, high export and low import combine to maintain the rally in US gasoline markets which again reached new record levels yesterday. High prices have so far not been seen to impact demand ahead of the US driving season.
• Countries are gradually moving away from Russian oil even without specific sanctions so supply disruption will continue even if EU delay or do not agree a ban Russian oil.
• The crude curve structure strengthened with the front time spreads reaching the highest levels since March.
• Brent JUL 22-AUG 22 down -0.08$/bbl at 2.05$/bbl
• Brent DEC 22-DEC 23 up 0.01$/bbl at 13.2$/bbl