Crude Steady As EU Extends Price Cap Discussions

Crude is edging higher on the back on the weaker US dollar as the market balances economic recession fears and covid restrictions in China against the upcoming sanctions on Russian oil exports.

• Brent JAN 23 up 0.4% at 85.71$/bbl
• WTI JAN 23 up 0.7% at 78.48$/bbl
• Gasoil DEC 22 up 0.3% at 924$/mt
• WTI-Brent down -0.14$/bbl at -7.23$/bbl
• EU discussions will continue today as members struggle to come to an agreement on the Russian oil price cap details. A higher than expected price cap of 65-70$/bbl is under consideration which some members consider to be too high and not ambitious enough. A higher price cap would lead to a reduced drop off in Russian output than forecast with the current Urals price at or even below the suggested cap level.
  • Brent JAN 23-FEB 23 up 0.01$/bbl at 0.11$/bbl
  • Brent JUN 23-DEC 23 up 0.04$/bbl at 2.84$/bbl
• Crude time spreads have continued to soften on the possibility of less disruption to Russian supplies and with weaker demand growth expectations. The prompt WTI spread remains in contango with the Brent spread trading positive after also briefly turning negative yesterday. The remainder of the curve remains in backwardation on uncertainty over Russian supplies and Chinese demand next year.
• Crack spreads are holding steady with diesel just slightly down on the week on demand concerns. Gasoline cracks fell back yesterday after trading higher earlier in the week due to a draw in US East Coast gasoline stocks.
  • EU Gasoline-Brent down -0.3$/bbl at 3.4$/bbl
  • EU Gasoil-Brent up 0.4$/bbl at 37.65$/bbl