May 03, 2024 15:04 GMT
OIL: Crude Time Spreads Extend Weekly Decline
OIL
Crude time spreads extend the weekly decline to the lowest since mid March as futures fall back towards the lows seen yesterday.
- The Brent Dec24-Dec25 spread is down from around $5.75/bbl at the start of the week to $4.29/bbl while the prompt spread has fallen to $0.57/bbl.
- Market focus is back on to fundamentals amid weak near term fuel demand and uncertainty over future oil demand growth in US and China after the easing of geopolitical risks in the last week.
- The weakness is despite a softer US dollar today and commitment from OPEC+ members Iraq and Kazakhstan to compensate for Q1 overproduction.
- Technical analysis shows a bearish theme remains intact with next Brent support at $82.32/bbl and WTI support at $78.03/bbl.
- Brent JUL 24 down 0.4% at 83.32$/bbl
- WTI JUN 24 down 0.6% at 78.49$/bbl
- Brent JUL 24-AUG 24 down 0.06$/bbl at 0.58$/bbl
- Brent DEC 24-DEC 25 down 0.26$/bbl at 4.34$/bbl
- WTI JUN 24-JUL 24 down 0.05$/bbl at 0.42$/bbl
- WTI JUN 24-DEC 24 down 0.3$/bbl at 2.92$/bbl
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