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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
Crude backwardation has softened since late September but remains strong amid risks of an escalation of the conflict in Middle East while front month Brent futures have eased back from a high of nearly 93.8$/bbl on 20 Oct. Prices have eased as the prospects of an Israeli ground offensive seems to be in doubt.
- Demand uncertainty has limited upside futures moves but optimism for a slightly more positive US economic picture could be supportive ahead of the Fed rate decision next week.
- Supplies are expected to remain tight this year due to OPEC+ member output cuts while Andurand sees no change in Saudi Arabia oil policy to bring back supply until oil is at 110$/bbl.
- The Brent prompt time spread is trading at around 1.15$/bbl compared to a high of nearly 2.3$/bbl in late September while the Dec23-Dec24 spread is down from 10.75$/bbl to 7.4$/bbl.
- The Chevron And Exxon deals are proof hydrocarbons here to stay according Bloomberg headlines citing Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman. The oil market strategy is working as less volatile markets help world growth he added.
- Brent DEC 23 down -0.5% at 89.35$/bbl
- WTI DEC 23 down -0.6% at 84.97$/bbl
- WTI-Brent down -0.07$/bbl at -4.37$/bbl
- Brent DEC 23-JAN 24 down -0.01$/bbl at 1.13$/bbl
- Brent DEC 23-DEC 24 down -0.51$/bbl at 7.22$/bbl
- WTI DEC 23-JAN 24 down -0.1$/bbl at 0.97$/bbl
- WTI DEC 23-DEC 24 down -0.53$/bbl at 7.56$/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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