Oil Price Update – Crude Losses Deepen

Crude prices have fallen sharply as wider economic concerns and future central bank policy and rate hikes create a more bearish demand outlook. The possible US shutdown is also adding further uncertainty to markets. Continued supply tightness provides some upside support.

• WTI NOV 23 down -2.3% at 91.5$/bbl
• WTI-Brent down -0.53$/bbl at -3.33$/bbl
• WTI NOV 23-DEC 23 down -0.33$/bbl at 2.05$/bbl
• WTI DEC 23-DEC 24 down -1.18$/bbl at 11.02$/bbl
• Global oil markets will likely remain in a supply deficit for the rest of the year with a shortfall of 1.1mb/d in Q4 narrowing from the 1.3mb/d deficit in Q3 according to Bloomberg.
• Rising crude oil prices toward $100/bbl could incentivize Saudi Arabia to revive output again, rather than risking a further price surge that damages the economy, Rapidan Energy President, Bob McNally said.