Oil Markets Down in Early Session Following Weak EIA Report

Oil prices are weak in early trading following yesterday’s EIA report which indicated demand weakness lingers during peak summer demand driving season as well as stubbornly high COVID cases in China which is prompting sustained lockdown measures.

• Brent SEP 22 down -0.6% at 106.33$/bbl
• WTI SEP 22 down -0.8% at 99.09$/bbl
• Gasoil AUG 22 down -0.4% at 1067.75$/mt
• WTI-Brent down -0.33$/bbl at -7.23$/bbl
• Crude has faced weakness for much of this week on global demand concerns and recession risks as central banks lean towards raising interest rates to control soaring inflation - most of which is attributed to higher energy costs.
• Brent SEP 22-OCT 22 down -0.07$/bbl at 4.48$/bbl
• Brent DEC 22-DEC 23 down -0.03$/bbl at 10.3$/bbl
• US gasoline and diesel cracks have been weakening against indications that the US summer driving season is facing demand destruction at the pumps this year due to record high prices, though they have dipped in recent weeks which should encourage an uptick in consumer demand. Refining cracks face further pressure today on the back of the latest EIA report.
• US 321 crack down -2.8$/bbl at 36.46$/bbl,
• US gasoline crack down -4.2$/bbl at 30$/bbl
• US ULSD crack up 0$/bbl at 49.32$/bbl