WTI-Brent Continues to Drift Lower

The WTI-Brent spread is edging lower again today after falling from -5.83$/bbl on Friday down to -6.60$/bbl today. The WTI-Brent spread has seen a gradual widening so far this month with recovering stocks at Cushing, uncertainty over US economic growth and potential for tighter Europe supplies due to Russian sanctions.

• WTI crude oil aggregate open interest continues to increase but remains well below Brent open interest despite a slight dip this week.
• Nymex WTI aggregate open interest has increased to 1.804m contracts from 1.4m in December. ICE Brent open interest increased strongly during the first half of January but has fallen slightly over the last week back to 2.104m.
• Crude markets are holding onto gains on the back to of supply issues in Turkey and Norway. Turkey has this morning ordered the resumption of flows to the Ceyhan export terminal after stopping a small leak and should therefore allow the resumption of the halted Kurdish oil flows. The halt to production at Norway’s Johan Sverdrup Phase 1 was yesterday expected to last 2-3 days.
  • Brent APR 23 up 2.3% at 82.84$/bbl
  • WTI MAR 23 up 2.4% at 75.9$/bbl
  • WTI-Brent down -0.09$/bbl at -6.61$/bbl
  • Brent APR 23-MAY 23 up 0.07$/bbl at 0.35$/bbl
  • Brent JUN 23-DEC 23 up 0.27$/bbl at 2.59$/bbl