Crude Ticks Higher But Set for Weekly Decline amid Demand Fears

Crude is extending the recovery today to regain some of the lost ground this week although front month futures are still net down over 4$/bbl on the week amid global demand concern.

• Brent JAN 24 up 0.5% at 80.41$/bbl
• WTI DEC 23 up 0.4% at 76.04$/bbl
• Gasoil DEC 23 down -0.5% at 781.25$/mt
• WTI-Brent down -0.04$/bbl at -4.33$/bbl
• A bearish demand outlook in the US and China and Europe is weighing on prices while supply concerns linked to the conflict in the Middle East have eased recently and Russia supply has increased. Continued consumer spending headwinds was highlighted by a PBoC official today.
• Saudi Energy Minister Prince Abdulaziz bin Salman yesterday said the recent oil decline is due to speculators and that oil demand is healthy according to Bloomberg.
• Weak prompt demand, record US output and recovering Cushing stocks are weighing on the prompt WTI. The front 1-2 month spread yesterday fell into contango for the first time since early July.
  • Brent JAN 24-FEB 24 up 0.05$/bbl at 0.22$/bbl
  • Brent JUN 24-DEC 24 unchanged at 1.78$/bbl
• Gasoline cracks are heading for another net gain on the week with some limited demand support however US diesel futures continue to pull back. The front month US diesel crack spread is falling through the October lows as trucking demand for fuel in the US remains slow and amid a decline in industrial and economic activity in Europe.
• Russian fuel producers have been told by the government that the remaining restrictions on diesel and gasoline exports will be lifted next week, three industry sources told Reuters on Thursday.
  • US gasoline crack down 0$/bbl at 15.26$/bbl
  • US ULSD crack down -0.3$/bbl at 38.2