US Demand Concern and Increasing Cushing Stocks Weigh on WTI-Brent Spread

The WTI-Brent spread continues to widen as economic downturn concerns weighs on US crude and Russian supply risks add support to Brent.

• The spread has gradually declined from around -6$/bbl at the start of the month down to -6.9$/bbl. An eight week build in Cushing inventories back above normal and congress mandated SPR crude withdrawals of 26mbbls before the end of September are adding to the near term downward pressure on the spread.
• The wider oil market is stable today while holding onto small daily gains with the weak demand and economic pressure weighed against China demand optimism with ongoing Russian supply uncertainty.
• Time spreads are also slightly higher on the day but the prompt WTI spreads remains in contango.
  • Brent APR 23 up 0.6% at 82.71$/bbl
  • WTI APR 23 up 0.5% at 75.79$/bbl
  • WTI-Brent down -0.05$/bbl at -6.91$/bbl
  • Brent APR 23-MAY 23 up 0.07$/bbl at 0.33$/bbl
  • Brent JUN 23-DEC 23 up 0.1$/bbl at 2.38$/bbl
  • WTI APR 23-MAY 23 up 0.02$/bbl at -0.19$/bbl
  • WTI JUN 23-DEC 23 up 0.13$/bbl at 1.89$/bbl