Global Oil Demand Concerns Driving Crude Lower

Brent crude falls with inflationary pressure and central bank tightening still weighing on global oil demand expectations. A slightly stronger US dollar is adding to the downside pressure.

• Next technical support for the Brent Apr23 contract is 17 Feb low of 81.8$/bbl.
• Despite the fall in the flat price futures, the prompt time spread remains up on the day supported by ongoing supply uncertainty with the expected 500kbpd production cut by Russia in March.
• The concern for the US economy and the small SPR release expected this year is driving WTI lower compared to Brent with the spread falling to the widest this month at -6.68$/bbl.
  • Brent APR 23 down -1.5% at 82.78$/bbl
  • WTI APR 23 down -0.6% at 76.1$/bbl (change vs 17 Feb close)
  • WTI-Brent down -0.32$/bbl at -6.67$/bbl
  • Brent APR 23-MAY 23 up 0.05$/bbl at 0.34$/bbl
  • Brent JUN 23-DEC 23 down -0.14$/bbl at 2.34$/bbl