Oil Markets Retreat After Strong Week

Crude has softened after rallying more than 9% in the last three sessions. Crude faced some downside yesterday after the EIA reported showed a huge crude build of 10.2mn bbls.

• Brent FEB 23 down -0.9% at 81.98$/bbl
• WTI JAN 23 down -1% at 76.47$/bbl
• Gasoil JAN 23 up 0.1% at 923.5$/mt
• WTI-Brent up 0.04$/bbl at -5.38$/bbl
• TC Energy have also restarted a section of the Keystone pipeline, easing some supply pressure for the US refining system.
• China is facing a surge in infections as it tries to back away from its zero covid policy. The oil markets await any news they are set to stay on this path or revert back to stricter measures and hamper demand again. The IEA placed China re-opening as a key for energy demand forecasts into early next year as global recession woes dent demand elsewhere.
• OPEC and Goldman Sachs were more cautious about oil demand in early 2023.
• The US Federal Reserve raised interest rates yesterday while warning they still have room to climb – placing pressure on crude outlooks.
• WTI JAN 23-FEB 23 down -0.09$/bbl at -0.12$/bbl
• Brent FEB 23-MAR 23 up 0.03$/bbl at -0.02$/bbl
• Prompt time spreads held in a bearish contango structure, although the gap has narrowed. The difference between the two nearest contracts for global benchmark Brent was 5 cents a barrel in contango, compared with 44 cents a week earlier.
• US gasoline crack down -0.1$/bbl at 16.75$/bbl
• US ULSD crack down -0.1$/bbl at 59.82$/bbl