Crude Time Spreads Surge on Supply Concern

Crude time spreads are extending gains amid tight supply concerns and the risk to future supplies due to Middle East tensions although no immediate impact on crude flows is expected.

• Front month Brent futures are holding relatively steady and below the peak of nearly 89$/bbl seen earlier today but time spreads are approaching the highs from last week.
• The WTI-Brent front month spread has reverse the gains from late last week pulling back from a high of -3.12$/bbl.
• The gains reverse the sharp sell-off in Brent Dec futures last week due to demand concerns which has resulted in a break of support around the 50-day EMA of 87.43$/bbl. Current Brent resistance is at the 20 day EMA of 89.96$/bbl with support down at 83.84$/bbl.
  • Brent DEC 23 up 4.4% at 88.34$/bbl
  • WTI NOV 23 up 4.8% at 86.75$/bbl
  • WTI-Brent down -0.18$/bbl at -3.43$/bbl
  • Brent DEC 23-JAN 24 up 0.35$/bbl at 1.8$/bbl
  • Brent JAN 24-FEB 24 up 0.28$/bbl at 1.25$/bbl
  • Brent DEC 23-DEC 24 up 1.63$/bbl at 8.86$/bbl