Free Trial

Crude Ticks Higher After Volatile Trading Yesterday


Crude edging higher after a mixed day yesterday saw Brent trading between 89.3$/mbbl and 93.5$/bbl. An economic slowdown and weaker oil demand growth concerns continue to weigh on the market after US Fed raised rates by 75bp last night. Crude lost gains from earlier in the day yesterday after a fall in EIA demand data and with a stronger US dollar.

    • Brent NOV 22 up 0.8% at 90.54$/bbl
    • WTI NOV 22 up 0.7% at 83.53$/bbl
    • Gasoil OCT 22 up 1.5% at 982$/mt
    • WTI-Brent down -0.13$/bbl at -7$/bbl
  • Oil markets had rallied in the morning yesterday after an escalation in Russia’s war in Ukraine raised uncertainty over Russia output impacting global supplies. Time spreads followed the moves in the flat price with longer dated spreads holding stronger and closing higher on the day.
    • Brent NOV 22-DEC 22 up 0.05$/bbl at 1.08$/bbl
    • Brent DEC 22-DEC 23 up 0.16$/bbl at 10.28$/bbl
  • EIA inventory data showed a build in crude and product stocks and further weakness in both gasoline and diesel implied demand.
  • Uncertainty over demand from China is adding to market volatility as they continue with their Covid Zero policy. Ongoing restrictions throughout the year have reduced their demand but a recent drawdown in crude stocks may be a sign of higher refinery run rates and extra fuel export quotas aimed at helping their recovery.
    • US 321 crack up 0.5$/bbl at 30.08$/bbl
    • US gasoline crack down -0.1$/bbl at 18.25$/bbl
    • US ULSD crack up 0.1$/bbl at 53.55$/bbl

To read the full story


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.