Oil Markets Supported by Physical Tightness

Oil prices have found some strength in the early session, after facing a slip of around 3% yesterday on the back of weak demand outlooks for major consumers like the US and China, rate hikes by central bikes to combat inflation and Libyan oil production improvements materializing in the short-term.

• Brent SEP 22 up 1.2% at 105.15$/bbl
• WTI SEP 22 up 1.2% at 97.5$/bbl
• Gasoil AUG 22 up 2.9% at 1056$/mt
• WTI-Brent down -0.1$/bbl at -7.64$/bbl
• Global demand outlooks still look weak but crude markets have recovered today with the underling fundamentals of physical tightness still supporting crude markets from further drops.
• Brent SEP 22-OCT 22 up 0.28$/bbl at 4.66$/bbl
• Brent DEC 22-DEC 23 up 0.53$/bbl at 10.03$/bbl
• US gasoline and diesel cracks have taken a hit this week as demand figures show weakness for major consumers, the biggest being a surprise build in US gasoline stocks in this week’s EIA report. US gasoline demand should begin to recover somewhat into the later end of the summer driving season after a sustained drift lower in pump prices.
• US gasoline crack down -1$/bbl at 28.38$/bbl
• US ULSD crack down -1.1$/bbl at 49.69$/bbl