Front Month Crude Extends Gains to High of the Week

Front month crude extends the gains on the day up to the highest of the week with tight supplies from OPEC+ cuts and Iran supply risks offsetting economic driven demand uncertainty.

• Brent Dec23 has traded through the first technical resistance at the 20-day EMA of 88.63$/bbl while WTI is approaching the resistance at 86.32$/bbl.
• Crude curve backwardation has strengthened in line with the flat price move today with both the Brent prompt time spread and Dec23-Dec24 spread regaining most of the losses seen midweek. The risk of escalation of the Israel-Hamas conflict to a broader conflagration is boosting prices after seeing a decline as US intelligence headlines suggested a lack of Iranian knowledge in the Israel attacks earlier in the week.
• The front month WTI-Brent spread continues to widen down to -4.32$/bbl from around -3.5$/bbl midweek.
  • Brent DEC 23 up 3.7% at 89.15$/bbl
  • WTI NOV 23 up 3.8% at 86.08$/bbl
  • WTI-Brent down -0.26$/bbl at -4.31$/bbl
  • Brent DEC 23-JAN 24 up 0.25$/bbl at 1.44$/bbl
  • Brent DEC 23-DEC 24 up 1.29$/bbl at 7.55$/bbl
  • WTI NOV 23-DEC 23 up 0.12$/bbl at 1.23$/bbl
  • WTI DEC 23-JAN 24 up 0.16$/bbl at 1.23$/bbl
  • WTI DEC 23-DEC 24 up 1.23$/bbl at 7.83$/bbl