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Crude Steady After Volatile Trading Yesterday


Crude holding largely unchanged after a volatile day yesterday saw prices fall about 5$/bbl before fully recovering after a report of a possible OPEC production increase was later denied by the Saudi Energy Minister. Prices have been under downside pressure from recession fears and central bank tightening along with Chinese demand uncertainty driving the market 9$/bbl lower over the last week.

    • Brent JAN 23 up 0.3% at 87.72$/bbl
    • WTI JAN 23 up 0.1% at 80.1$/bbl
    • Gasoil DEC 22 up 3.5% at 948.75$/mt
    • WTI-Brent down -0.17$/bbl at -7.6$/bbl
  • Weaker demand and a short term supply boost has pushed time spreads lower, but the curve remains in backwardation. Future Russian output is uncertain with an EU ban and the G7 price cap on Russian seaborne crude starting in two weeks. Russia yesterday reiterate that they will not supply fuel to nations implementing a price cap. Further details of the price cap level could be announced tomorrow.
    • Brent JAN 23-FEB 23 up 0.08$/bbl at 0.44$/bbl
    • Brent FEB 23-MAR 23 up 0.04$/bbl at 0.46$/bbl
    • Brent JUN 23-DEC 23 up 0.05$/bbl at 3.27$/bbl
    • Brent DEC 23-DEC 24 up 0.01$/bbl at 4.24$/bbl
  • Diesel and gasoline crack spreads have trending higher over the last week despite the gradual decline in crude. Tight supplies and low stock levels are providing support with refiners unable to replenish low distillate stock levels due to limited spare refining capacity.
    • EU Gasoline-Brent down -0.3$/bbl at 2.82$/bbl
    • EU Gasoil-Brent down -0.6$/bbl at 37.97$/bbl

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