As if nothing happened

Brent prompt prices are back to their level of the start of the week: above $73/b. The sharp downward correction on concerns over the Delta variant ($67.44/b was touched on Tuesday) has been entirely erased, as risky assets in general posted a strong recovery and the oil market acknowledged it would remain under supplied during summer. The prompt time spread has jumped higher to 0.65/b in backwardation, a bullish pattern.

Brent timespread

The rebound in air traffic on both sides of the Atlantic is fueling optimism, although it remains some 35% below 2919 levels in Europe and road traffic appears to be declining due to increasing restrictions imposed to cope with the rapid spread of the virus on the continent.

Russia is ready to introduce a ban on gasoline exports as soon as next week to limit the rise in domestic prices. Such a measure had already been discussed in April without being implemented. Russia exported 5.83mt of gasoline last year according to Bloomberg calculation.

Share this news :

You might also read :

ES-economy
October 18, 2021

China’s GDP slows down significantly

China’s GDP growth fell to +4.9% yoy in Q3, but more importantly, GDP grew by only 0.2% qoq compared to the 2%+ variations in the summers…
ES-gas
December 6, 2021

Slight price drop

European gas prices weakened overall on Friday, pressured by milder weather and steady pipeline flows. Norwegian flows were up on Friday, averaging 344 mm cm/day,…
ES-gas
March 1, 2021

Mixed European gas prices

With unchanged fundamentals, European gas prices were mixed on Friday. On the pipeline supply side, Norwegian flows were up on Friday, averaging 318 mm cm/day,…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet? 

[booked-calendar]