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 :
Share on twitter
Share on linkedin
Share on email

You might also read :

May 24, 2021

Cyclone premium

ICE Brent prompt contract recovered to 67.1 $/b on early Monday, as a potential cyclone formation in the Gulf coast could have an impact on…
April 7, 2021

Japanese refiners reduce throughputs

ICE Brent futures contracts remained broadly stable, at 63 $/b, after regaining from Monday’s price slump. The talks to revive the Iranian nuclear deal were…
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?  Sign up here!