Oil price risks shift to upside: Kemp | Reuters

Oil price risks shift to upside: Kemp | Reuters:

Oil traders no longer expect the market to be over-supplied this year, amid optimism a full-blown U.S.-China trade war will be averted, and oil production growth will slow thanks to OPEC cuts and sanctions on Venezuela.

Front-month Brent futures prices have jumped to almost $65 per barrel, up from just $50 in late December, and the highest for nearly three months (tmsnrt.rs/2V4bGD1).

Brent’s six-month calendar spread has swung into a backwardation of almost 70 cents per barrel, from a contango of more than $1.50 late last year, the strongest for almost four months.