Steady oil price belies weakening physical market - Reuters:
The oil price is holding steady close to $45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country’s buying binge earlier in the year.
The spread between Brent crude for nearby delivery and six-months ahead is at its widest since late May at around $2.50, a market structure known as contango.
The coronavirus crisis reduced global oil demand by nearly a third in April and May when 4 billion people around the world were in some form of lockdown.
The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts.
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