Major Upside Risks In The Oil Market

MMR Research
501 Followers
(8min)

Summary

  • Short-term backwardation in the market has clearly steepened.
  • Crude oil floating and observable land inventories are below seasonal averages.
  • The actual OPEC+ supply in the market is likely to be much lower than announced.
  • Non-OPEC+ supply growth in Q2 is likely to disappoint.
Oil pumps and wind mill during sunset.

Torsten Asmus

Short-Term Backwardation in the Oil Market Has Clearly Steepened

Short-term backwardation in the oil market has steepened compared to the previous month and three months ago (Figure 1). Brent future spreads have widened in almost all differentials, at least until November. In fact, near-term spreads, currently

This article was written by

501 Followers
An experienced Long, Short & Contrarian analyst specializing in identifying profitable bottom-up opportunities. Specialist in Energy, Crude oil, Chemicals and Industrials. Extensive experience of covering Emerging Markets & Middle East equities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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