Crude Steady As Cracks Fall on Weak Demand Data

Crude futures prices are holding steady today as the market weighs up the high demand and supply uncertainty. Crude is up 8$/bbl from a low at the start of the year, supported by optimism for a Chinese demand recovery, Russian output concerns and a weaker US dollar on the potential for a slowing in rate hikes.

• Brent MAR 23 up 0.1% at 86.18$/bbl
• WTI MAR 23 up 0.3% at 80.36$/bbl
• Gasoil FEB 23 down -0.1% at 956.75$/mt
• WTI-Brent down -0.01$/bbl at -5.82$/bbl
• The market remains largely unchanged on the updated EIA inventory data yesterday which showed a smaller recovery in refinery utilisation than expected, strong crude exports, high product imports and weak product demand.
• Weak demand is keeping the prompt spread in contango suggesting ample near term supplies. The remainder of the curve is in strong backwardation with Jun23-Dec and Dec23-Dec24 near the highest levels since mid November.
  • Brent MAR 23-APR 23 down -0.02$/bbl at -0.09$/bbl
  • Brent JUN 23-DEC 23 up 0.02$/bbl at 2.93$/bbl
• Refined product crack spreads pulled back yesterday assisted by product supplied data showing levels at the bottom of the five year range for both gasoline and diesel. The four week average diesel implied demand remain unchanged on the week but gasoline implied demand declined further. Concern for Russian product supplies following the EU ban from 5 Feb had supported a strong rally during the month before the pull back.
  • US gasoline crack down -0.3$/bbl at 28.23$/bbl
  • US ULSD crack down -0.1$/bbl at 56.38$/bbl