OIL: Prompt Spreads Hold Steady Amid Softening Crude Market

Crude prompt time spreads are relatively unchanged on the day while the Dec24-Dec25 spread has followed the decline in front month futures.

• Oil markets are facing further weakness amid sustained demand fears out of China and dollar strength although prices have recovered slightly after falling through last week’s low to a WTI low of $80.22/bbl earlier today.
• Technicals show support for the WTI August contract at the 50-day EMA of $80.07/bbl.
• Near term spreads are finding some support with a market deficit and stock draws expected over the summer but some analysts expect a surplus next year due to the potential return of some OPEC+ supply from October and future global oil demand growth uncertainty.
  • Brent SEP 24 down 0.9% at 84.11$/bbl
  • WTI AUG 24 down 1% at 81.05$/bbl
  • Brent SEP 24-OCT 24 down 0.02$/bbl at 0.93$/bbl
  • Brent DEC 24-DEC 25 down 0.18$/bbl at 4.71$/bbl
  • WTI AUG 24-SEP 24 down 0.04$/bbl at 1.03$/bbl
  • WTI DEC 24-DEC 25 down 0.2$/bbl at 5.14$/bbl