Prompt WTI Spread Lowest Since Jul 2021

The WTI prompt spread is the lowest since Jul 2021 as economic driven demand concerns pressure futures prices.

• Further out along the forward curve is still in strong backwardation despite an easing of the spreads over the last couple of weeks. Global crude supply risks due to Russia output uncertainty following the EU ban and G7 price cap from Dec 5 are supporting longer dated spread
• Short term supplies are boosted by high freight rates curbing exports and Texas pipeline issues and despite Cushing inventories at the bottom of the five year range and 45% below normal.
  • WTI DEC 22-JAN 23 down -0.13$/bbl at 0.11$/bbl
  • WTI JAN 23-FEB 23 down -0.01$/bbl at 0.3$/bbl
  • WTI DEC 22-DEC 23 down -0.35$/bbl at 5.64$/bbl
  • WTI DEC 23-DEC 24 unchanged at 4.2$/bbl
  • Brent JAN 23-FEB 23 down -0.13$/bbl at 0.83$/bbl
  • Brent JUN 23-DEC 23 unchanged at 3.76$/bbl

Source: Bloomberg