Curve Backwardation Softens as Crude Declines

Crude edges back up slightly from earlier losses but WTI is still down around 6.5% from a high of 82.4$/bbl on 27 Jan.

• Next technical support for WTI is at 76.53$/bbl with Brent support at 82.37$/bbl.
• Forward curve backwardation has softened in line with the trend from the wider crude market. The front spreads are seeing a little more support than longer dated spreads with uncertainty over Russian oil supplies from next week.
• The WTI-Brent spread is hovering around -7$/bbl having fallen from around -4.5$/bbl at the start of the month.
  • Brent APR 23 down -0.9% at 83.73$/bbl
  • WTI MAR 23 down -1.1% at 77.05$/bbl
  • WTI-Brent up 0.24$/bbl at -7.03$/bbl
  • Brent APR 23-MAY 23 down -0.03$/bbl at 0.33$/bbl
  • Brent MAY 23-JUN 23 down -0.05$/bbl at 0.41$/bbl
  • Brent JUN 23-DEC 23 down -0.34$/bbl at 2.74$/bbl
  • Brent DEC 23-DEC 24 down -0.27$/bbl at 4.42$/bbl