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OIL: WTI Rallies Faster than Brent Supported by US macro data

OIL

Crude markets are extending gains from late yesterday with WTI rising faster than Brent supported by recent US macro data.

  • The US crude inventory draw in data released yesterday and risks to Canadian output due to wildfires are also supportive.
  • The WTI-Brent spread has narrowed this month from around -$5.25/bbl on May 3 to -$4.44/bbl today.
  • Crude backwardation is also strengthening and regaining losses from earlier in the week to follow the rally in the front month futures.
  • Technicals suggest the bear threat is still present with Brent resistance is up at the 50 day EMA of 84.59/bbl and WTI at $80.31/bbl.
    • Brent JUL 24 up 1% at 83.55$/bbl
    • WTI JUN 24 up 1.2% at 79.58$/bbl
    • WTI-Brent up 0.08$/bbl at -4.5$/bbl
    • Brent JUL 24-AUG 24 up 0.03$/bbl at 0.45$/bbl
    • Brent DEC 24-DEC 25 up 0.16$/bbl at 4.37$/bbl
    • WTI JUN 24-JUL 24 up 0.05$/bbl at 0.52$/bbl
    • WTI JUN 24-DEC 24 up 0.27$/bbl at 3.34$/bbl

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