April 30, 2024 13:56 GMT
Oil Markets Fall Amid Stronger USD and Demand Concern
OIL
Crude futures and time spreads are pulling back following a jump in the US dollar with the firmer-than-expected U.S. data providing the latest ‘hawkish’ input.
- Crude backwardation has softened as the front month has fallen with concern for global demand growth amid the possibility of higher US interest rates for longer.
- Front month Brent has reversed much of the gains seen last week with a reduced geopolitical risk premium aiding the pull back.
- Technical analysis shows Brent support at the 50 day EMA of $85.32/bbl and WTI support at the 50 day EMA of $81.20/bbl.
- Oil product cracks spreads are also weaker under pressure from global demand concerns.
- Brent JUL 24 down 1% at 86.3$/bbl
- WTI JUN 24 down 1% at 81.82$/bbl
- Brent JUL 24-AUG 24 down 0.07$/bbl at 0.71$/bbl
- Brent DEC 24-DEC 25 down 0.19$/bbl at 5.32$/bbl
- US gasoline crack down 1.3$/bbl at 30.97$/bbl
- US ULSD crack down 0.4$/bbl at 24$/bbl
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