Oil Markets Holding Onto Yesterday's Gains

Crude markets are holding steady after reaching a new high yesterday at about 91.4$/bbl as tight supplies and low stocks continue to drive crude and oil product markets higher. A weaker US dollar yesterday added to the price support as the market considers the potential for the US Fed to pause the recent rate hike cycle. Uncertainty still surrounds demand in China despite recent strong imports.

• Brent NOV 23 up 0.3% at 90.87$/bbl
• WTI OCT 23 up 0.3% at 87.59$/bbl
• Gasoil OCT 23 up 0.3% at 982.75$/mt
• WTI-Brent up 0.02$/bbl at -3.91$/bbl
• The Brent Nov 23 contract technicals show the bulls remain in the driving seat and a continuation higher would set the scene for gains towards 92.91$/bbl.
• The Brent Dec23-Dec24 spread is trading just below yesterday’s high reflecting the tight market although the prompt spread has drifted lower in the last week having peaked at 0.82$/bbl on 5 Sep.
  • Brent NOV 23-DEC 23 down -0.03$/bbl at 0.57$/bbl
  • Brent DEC 23-DEC 24 up 0.07$/bbl at 7.24$/bbl
• A diesel price rally yesterday was also supportive of the wider oil market with low inventories and the upcoming US refinery season adding to the upward pressure on product prices. Russia’s oil refineries scaled back operations in early September for seasonal maintenance with a fall in primary crude processing. Russian diesel exports from key western ports are expected to fall by a quarter this month.
• Gasoline gains were more limited than diesel with demand showing signs of weakness at the end of the summer driving season with a drop of 3.9% last week according to GasBuddy data.
  • US gasoline crack down -0.1$/bbl at 27.08$/bbl
  • US ULSD crack up 0.4$/bbl at 54.14$/bbl