Prompt Spreads at Records Before Contract Expiry

Crude is unchanged this morning after another volatile day yesterday where Brent bounced within a 3$/bbl range.

• The market continues to balance the risks of lower demand growth due to an economic slowdown against the ongoing tight physical supply situation. Brent has been trading in a wide 7$/bbl range just above 100$/bbl after recessionary risks brought levels down from a peak of 125$/bbl in early June.
  • Brent OCT 22 up 0.4% at 102.22$/bbl
  • WTI SEP 22 up 0.6% at 97$/bbl
  • Gasoil AUG 22 down -0.7% at 1095.75$/mt
  • WTI-Brent up 0.12$/bbl at -10.41$/bbl
• The front of the Brent curve has reflected the tight supply with the Sep-Oct spread trading up to a record 5.36$/bbl yesterday ahead of the Sep contract expiry today. The high front month Brent price has also driven the premium over WTI to more than 10$/bbl.
• Reports are that OPEC are likely to keep output steady or raised slightly at the next meeting due to take place on Wed 3rd August.
  • Brent OCT 22-NOV 22 up 0.04$/bbl at 2.38$/bbl
  • Brent DEC 22-DEC 23 up 0.24$/bbl at 10.03$/bbl
• Refined product crack spreads are steady after net falling on the day yesterday after weak implied demand figures from the EIA earlier in the week provided little support for prices.
  • US gasoline crack down -0.2$/bbl at 33.79$/bbl
  • US ULSD crack up 0.4$/bbl at 55.3$/bbl