Crude Time Spreads Fall to Lowest Since OPEC Cut Announcement

Crude time spreads are pulling back to the lowest since the OPEC production cut announcement at the end of March.

• The move is driven by ongoing concern for oil demand growth and with signs that healthy Russia exports have maintained despite production cuts. Russia’s energy ministry said output was cut by 700kbpd in March, but ship tracking data suggests exports back above 3mbpd last week.
• The prompt Brent spread is down from a peak of 0.58$/bbl late last week to a low of 0.2$/bbl today. The WTI prompt spread is just in negative territory ahead of the WTI front month contract expiry on Thursday this week.
  • Brent JUN 23 down -0.3% at 84.52$/bbl
  • WTI MAY 23 down -0.3% at 80.58$/bbl
  • Brent JUN 23-JUL 23 down -0.08$/bbl at 0.23$/bbl
  • Brent JUN 23-DEC 23 down -0.27$/bbl at 2.77$/bbl
  • Brent DEC 23-DEC 24 down -0.14$/bbl at 4.99$/bbl
  • WTI MAY 23-JUN 23 down -0.03$/bbl at -0.03$/bbl
  • WTI JUN 23-DEC 23 down -0.21$/bbl at 3.13$/bbl
  • WTI DEC 23-DEC 24 down -0.13$/bbl at 5.29$/bbl

Source: Bloomberg