Crude Steady, Time Spreads Ease Awaiting OPEC+ Output Plans for Oct

Crude time spreads ease back from the highs seen on Friday as the market awaits details of Saudi Arabia and Russia plans for October output expected this week. Russia last week announced it has agreed on further actions with OPEC+ and will announce the steps this week while Saudi Arabia is expected to extend the existing 1mbpd production cuts.

• Crude curve backwardation has strengthened over the last week to reflect the tight market expectations. Brent Nov-Dec spread last week surged to the highest since June 2022 and the Dec23-Dec24 spread is the highest for over a year.
• Crude front month futures are holding steady today amid low traded volumes due to the US Labor day holiday.
• Technicals show bulls remain in the driving seat with the clear break of Brent resistance on Friday confirming a resumption of the uptrend and opens the psychological 90$/bbl handle.
  • Brent NOV 23 down 0% at 88.51$/bbl
  • WTI OCT 23 down -0.1% at 85.5$/bbl
  • WTI-Brent down -0.06$/bbl at -3.8$/bbl
  • Brent NOV 23-DEC 23 down -0.04$/bbl at 0.71$/bbl
  • Brent DEC 23-DEC 24 down -0.22$/bbl at 5.93$/bbl
  • WTI OCT 23-NOV 23 down -0.01$/bbl at 0.79$/bbl
  • WTI DEC 23-DEC 24 down -0.24$/bbl at 6.53$/bbl