May 22, 2024 06:35 GMT
OIL: Crude Extends Decline on Demand Concern and Building US Stocks
OIL
The crude market is weaker again today and approaching the lower end of the recent range with a more pessimistic demand outlook driven by concerns of stickier US inflation and possible delays to Fed rate cuts.
- Brent time spreads are following the bearish move in crude futures with the prompt spread falling to the lowest since early January despite the prospect of extended OPEC+ production cuts into H2 as widely expected by the market.
- API data showed U.S. crude oil and gasoline inventories rose last week according to Bloomberg adding further downside pressure to prices ahead of the official EIA numbers released later today.
- Brent JUL 24 down 0.8% at 82.22$/bbl
- WTI JUL 24 down 0.9% at 77.97$/bbl
- Gasoil JUN 24 down 1.1% at 751.25$/mt
- Brent JUL 24-AUG 24 down 0.03$/bbl at 0.15$/bbl
- Brent DEC 24-DEC 25 down 0.18$/bbl at 3.91$/bbl
- Gasoline cracks are down again today with the US plans to liquidate a cache of gasoline adding to weak seasonal demand, returning refineries from maintenance, and the temporary suspension of Russia’s gasoline export ban.
- The US is to sell the 1mbbl of gasoline in the Northeast Gasoline Supply Reserve according to the DOE to help ease upside price pressure over the summer driving season.
- US gasoline crack down 0.4$/bbl at 26.09$/bbl
- US ULSD crack down 0.2$/bbl at 25.56$/bbl
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