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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
Crude curve backwardation is softening as front month crude extends a pull back assisted by the strength in the US dollar today.
- Prompt Brent time spreads are near to lowest since Mar. 13 but are still reflecting a trend of steepening backwardation so far this year amid concern for a market deficit in Q2. OPEC+ output cuts are supportive as the markets hold a geopolitical risk premium. Upside is limited by uncertainty over US demand with just three US Fed interest rates cuts currently expected this year.
- The Jun24-Dec24 spread is also softening to 3.83$/bbl having increased from 0.46$/bbl in mid December up to a high of 4.6$/bbl on Mar. 19.
- Technicals show a bull cycle remains intact with first Brent resistance at the Mar. 20 high of 87.70$/bbl and support at the 20 day EMA of 83.78$/bbl.
- Brent MAY 24 down 0.4% at 85.59$/bbl
- WTI MAY 24 down 0.5% at 80.89$/bbl
- Brent MAY 24-JUN 24 down 0.02$/bbl at 0.55$/bbl
- Brent JUN 24-DEC 24 down 0.18$/bbl at 3.8$/bbl
- WTI MAY 24-JUN 24 down 0.04$/bbl at 0.45$/bbl
- WTI JUN 24-DEC 24 down 0.2$/bbl at 3.88$/bbl
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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