WTI Up But Unmoved By Rig Count Fall

WTI continues to trade stronger on the day, recovering some of the steep losses during the middle of the week. WTI has ticked down slightly from its intraday high of $77.70/b at 18:03 GMT (13:03 ET) despite US rig count data showing a fall on the week. The timid demand outlook continues to weigh on prices and limit upside movements.

• WTI is currently set for weekly losses of around 4% on the week, and down 8% on the month.
• US total oil and gas rig counts fell by two on the week to 616 rigs, according to Baker Hughes Rotary Rig Count data, the lowest weekly level since Feb. 4 2022.
• Prompt time spreads are currently at a marginal contango, after flipping structure yesterday. Expectations of building stocks and a bleak demand picture are weighing more heavily on the prompt. The prompt time spread is oscillating between a marginal contango and marginal backwardation, with the intermonth structure flattening out.
• WTI DEC 23 up 2% at 77.24$/bbl
• WTI DEC 23-JAN 24 up 0.01$/bbl at 0$/bbl
• WTI JAN 24-FEB 24 up 0.02$/bbl at 0.2$/bbl
• WTI DEC 23-DEC 24 up 0.31$/bbl at 3.3$/bbl