OIL: Brent Crude Extends Losses Below $70/bbl for First Time Since December

Brent crude falls through $70/bbl for the first time since December after extending earlier losses through support levels at the previous lows of the week.

• The move is an extension of the bearish theme amid market concerns for a surplus driven by weak US and China demand and after shrugging off the news of the OPEC+ two month production hike delay from last week.
• China’s August crude import volumes were today reported down 7% y/y although had increased 16% on the month.
• OPEC today revised oil demand forecasts very slightly lower for this year and next but the forecast for 2024 remains well above other market expectations at 2.03mb/d.
• The Dec24-Dec25 spread is following the move lower although the prompt spread remains above the lows of the week amid near term supply reductions.
  • Brent NOV 24 down 3.5% at 69.36$/bbl
  • WTI OCT 24 down 3.8% at 66.12$/bbl
  • Brent NOV 24-DEC 24 down 0.11$/bbl at 0.37$/bbl
  • Brent DEC 24-DEC 25 down 0.75$/bbl at 0.59$/bbl
  • WTI OCT 24-NOV 24 down 0.1$/bbl at 0.7$/bbl
  • WTI DEC 24-DEC 25 down 0.82$/bbl at 0.97$/bbl