- West Texas Intermediate extends losses from last week as the prompt contract is now near price levels observed right before Russia’s invasion of Ukraine
- The front of the forward curve has been volatile and may have given up previous gains, but the rest of the curve has been much higher since mid-February
- Curve movements since February 22:
- Prompt, up $1.40
- 2H 2022, up $6.92
- Cal 2023, up $6.96
- Cal 2024, up $5.48
- Cal 2025, up $3.52
- Oil analysts continue to cut their demand forecast as China’s Covid outbreak curbs travel (BBG)
- Wood Mackenzie forecasts gasoline and jet fuel demand falling by 750 MBbl/d in March and 600 MBbl/d in April due to the current wave of lockdowns
- Virus cases continue increasing in Shanghai, and there is no clarity on when restrictions will be lifted