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Volatile Crude Market Following US CPI Data

OIL

Crude oil is back near levels seen this morning after volatile trading following the US CPI data. Brent crude dipped as low as 84.17$/bbl after the data release.

  • Economic growth concerns are limiting any upside driven by supply concerns and China demand optimism with the US CPI data showing continuing inflationary pressures.
  • OPEC has raised its 2023 global oil demand growth forecast by 100kb/d to 101.87mb/d this year with a resurgence in Chinese demand cited as the key driver.
  • Optimism over future Chinese demand and the lower oil output from Russia are both supportive of the crude time spreads.
    • Brent APR 23 down -1.3% at 85.48$/bbl
    • WTI MAR 23 down -1.5% at 78.91$/bbl
    • WTI-Brent up 0.09$/bbl at -6.34$/bbl
    • Brent APR 23-MAY 23 down -0.05$/bbl at 0.33$/bbl
    • Brent JUN 23-DEC 23 down -0.27$/bbl at 2.83$/bbl

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