Spreads starting to reflect a more balanced market

Crude prices continued to spiral downwards, as the omicron variant continued to dent future expect demand. Front-month ICE Brent remains above 71 $/b, while time spreads corrected heavily over the last few days. Indeed, the Feb/March 22 spreads are now trading at 32 cents, from 110 cents prior to the month, reflecting the slowdown in stock draws. Crude differentials have also experienced some downside, especially for middle eastern crude benchmarks such as Oman, which reflect a lack of Asian prompt demand addressed to OPEC’s main producers. 

Energyscan oil news

OPEC members will meet on Thursday according to the latest reporting. Members will have to factor in the potential for demand destruction that the vaccine-resistant Omicron variant brings to the table. 

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

January 20, 2022

American diesel pull resumes

ICE Brent front-month settled at 88.4 $/b, as the API survey showed small builds in commercial crude (1.4 mb) which counterbalanced perfectly the release of…
February 19, 2021

Prices rebounded in most European markets

Prices rebounded yesterday in most European gas markets as participants began to be more sensitive to supply issues. The combined effect of reduced US LNG…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!