Steep backwardation hampers crude spot buying

Brent prompt future contract partially recovered from Friday’s sell-off, at 65.6 $/b, as the Iranian nuclear deal seemed in jeopardy after the Iranian refusal to join the talks organized by the Europeans. Furthermore, High US products cracks are incentivizing US refineries to ramp-up their secondary units swiftly. Lower US naphtha supply also had effects on Asian naphtha markets, with cracks hiking significantly. However, Chinese crude imports look increasingly soft, as prices for West African cargoes are showing signs of weakness. Finally, the $1.9 trillion US stimulus package is close to approval and would materially boost US employment, a key factor for gasoline consumption. 

Share this news :

You might also read :

March 3, 2022

Prices continue to skyrocket

European gas prices increased strongly yesterday, ignoring the continuation of Russia pipeline gas exports to Western Europe (which even increased to 258 mm cm/day yesterday,…
October 19, 2021

Renewed optimism

ising equities, slightly easing bond yields, falling USD: optimism prevails despite the sharp slowdown in the Chinese economy highlighted yesterday by the Q3 national accounts. Concerns…
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?