Crude Time Spreads Follow Front Month Gains on Red Sea Transit Suspensions

Crude spreads regain some ground as front month futures hold on earlier gains as more shippers have paused transits through the Red Sea region after two further attacks on vessels by Houthi rebels today.

• The Brent prompt spread is still in contango but back up to -0.19$/bbl from a low of -0.36$/bbl last week.
• The Jun24-Dec24 spread is back up to the highest since Dec 6 as the shipping risks have added support although backwardation remains much weaker than levels seen in November amid concern for a global supply surplus.
• The WTI-Brent spread has widened in recent days from around -4.3$/bbl on Dec 13 back to -4.885$/bbl ahead of the WTI Jan 24 futures contract expiry tomorrow.
• Technicals show the next Brent Feb24 contract resistance at the 50 day EMA of 80.76$/bbl and with WTI Feb24 resistance at the 50 day EMA at 76.37$/bbl.
  • Brent FEB 24 up 2.7% at 78.64$/bbl
  • WTI JAN 24 up 2.8% at 73.46$/bbl
  • WTI FEB 24 up 2.8% at 73.8$/bbl
  • WTI-Brent down -0.08$/bbl at -4.88$/bbl
  • Brent FEB 24-MAR 24 up 0.02$/bbl at -0.19$/bbl
  • Brent JUN 24-DEC 24 up 0.19$/bbl at 1.17$/bbl
  • WTI JAN 24-FEB 24 unchanged at -0.35$/bbl
  • WTI FEB 24-MAR 24 up 0.03$/bbl at -0.24$/bbl
  • WTI JUN 24-DEC 24 up 0.14$/bbl at 1.19$/bbl