COLUMN-Oil market will tighten sharply when U.S. refineries return from maintenance: Kemp - Reuters:
U.S. commercial crude oil inventories have been rising in recent weeks, which some observers have interpreted as evidence the global oil market is adequately supplied and blame for a sudden decline in oil prices.
But this narrative cannot explain the steep backwardation in futures prices for global grades such as Brent, which is usually associated with a market that is significantly under-supplied.
In fact, U.S. commercial inventories have been rising much less than normal for the time of year - even though refiners are undertaking heavy maintenance, which would otherwise have resulted in a larger stock build.
No comments:
Post a Comment