- Oil is trading lower, around $77.75, extending losses from yesterday
- WTI continued yesterday’s selloff during overnight trading, falling as low as $77 before rebounding slightly
- The US dollar is trading higher, which often leads to bearish pressure on crude prices
- Prompt Brent time spreads, which are often an indicator of market strength or weakness, have fallen to the lowest level since March
- Asian oil markets show signs of weakness (BBG)
- Diesel refining profit margins in Asia have shrunk, weakening prices of Middle Eastern crudes often used in the region
- Oman crude differentials are about $1/Bbl lower month-over-month, while Murban diffs are at a five-week low
- The weakness comes despite Saudi Arabia’s recent increase in its official selling price to Asian buyers
- EIA sees a balanced oil market in 2024 (BBG)
- The agency sees non-OPEC production rising to offset the production cuts from OPEC
- The EIA lowered its demand forecast, which would put the global oil market in a deficit of only 80 MBbl/d in 2024