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OIL: Brent Extends Rally Through Technical Resistance

OIL

Crude extends gains through the May 29 technical resistance for the Brent August contract of $84.72/bbl amid support from better risk sentiment.

  • Brent front month futures have rallied from a low of $76.76/bbl on June 4 while curve backwardation is also strengthening amid expectation of tighter supplies during Q3 and with potential improvement in summer fuel demand.
  • Time spreads have risen to the highest since late April with the prompt up to $0.85/bbl and Dec24-DCec25 up to $5.21/bbl.
  • A recovery in diesel margins this month is also supportive of the wider oil complex.
    • Brent AUG 24 up 0.9% at 84.99$/bbl
    • WTI JUL 24 up 1.2% at 81.3$/bbl
    • Brent AUG 24-SEP 24 up 0.11$/bbl at 0.84$/bbl
    • Brent DEC 24-DEC 25 up 0.2$/bbl at 5.19$/bbl
    • WTI JUL 24-AUG 24 up 0.2$/bbl at 0.81$/bbl
    • WTI DEC 24-DEC 25 up 0.21$/bbl at 5.51$/bbl

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