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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Supply keeps near dated spreads strong but economic concerns are reducing backwardation further out.
- Tight supply is keeping the front of the forward curve in steep backwardation with time spreads not far below the highs from recent months. The Brent 1-2 spread is trading at 3.9$/bbl having reached a peak of 4.18$/bbl in June and 4.64$/bbl back in March.
- The economic concerns have driven the longer dated spreads lower and flattened the forward curve over the last month. The Dec22-Dec23 spread has fallen from a peak of 16.5$/bbl in June back to 8.7$/bbl. This is however still above levels of 6$/bbl seen in February before the Ukraine conflict.
- The graph below shows the changing shape of the curve from last month and last week:
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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