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 :

You might also read :

ES-oil
November 18, 2021

Time spreads discount SPR release risk

Crude prices weakened, to reach 79.4 $/b for ICE Brent January contracts, as Biden tried to convince other countries to release crude from their domestic SPR.…
ES-oil
February 8, 2021

Normalisation without upside?

Brent prompt future contract approached topped 60 $/b on early Monday, as the successful OPEC meeting on last week continued to tighten crude markets. However,…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]