March 20, 2023 15:37 GMT
Crude Time Spreads Decline and Gasoil Spreads Rally
The oil forward curve shapes highlight the concern for US oil demand and tight European diesel supplies.
- The time spreads in crude markets are falling with the WTI curve now in contango out until Jun23-Jul23 suggesting ample near term supplies. The Apr23-Mar23 spread has fallen from -0.08$/bbl on 13 March down to -0.25$/bbl on the back on the global financial risks.
- The Brent curve has flattened however remains in backwardation with Russian supply uncertainty and China demand optimism for later this year still supporting spreads.
- The front of the Gasoil curve however continues to strengthen with the ongoing disruption to French refineries. The Apr23-May23 spread has extended gains so far today from around 30$/mt to 34$/mt.
- Brent MAY 23-JUN 23 down -0.02$/bbl at 0.18$/bbl
- Brent JUN 23-DEC 23 down -0.15$/bbl at 1.02$/bbl
- WTI APR 23-MAY 23 down -0.04$/bbl at -0.23$/bbl
- WTI JUN 23-DEC 23 down -0.07$/bbl at 0.75$/bbl
- Gasoil APR 23-MAY 23 up 1.75$/mt at 33.5$/mt
- Gasoil JUN 23-DEC 23 unchanged at 23.25$/mt
Keep reading...Show less