Time Spreads Continue to Rally

Brent prompt time spreads fall back slightly as the flat price has moved down. Spreads earlier reached the highest since early March as supply issues continue to drive the physical spreads higher

• Brent 1-2 traded up as high as 4.64$/bbl at the start of March
• Ecuador supply has started to return but Libya production is still uncertain and flows from Norway will be limited in the coming days due to union strike action shutting several fields.
• Despite a fall back in refined product crack spreads in recent weeks the prompt Gasoil time spread is keeping the curve strongly backwardated. The front spread is at the highest for the last month at 50$/mt, equivalent to 6.7$/bbl.
• Brent SEP 22-OCT 22 unchanged at 4.04$/bbl
• Brent DEC 22-DEC 23 down -0.17$/bbl at 12.69$/bbl
• WTI AUG 22-SEP 22 up 0.02$/bbl at 3.06$/bbl
• WTI DEC 22-DEC 23 down -0.2$/bbl at 13.14$/bbl
• Gasoil JUL 22-AUG 22 down -1.75$/mt at 49.75$/mt
• Gasoil DEC 22-DEC 23 down -6.25$/mt at 171$/mt