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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
Time spreads for prompt WTI delivery flipped to a contango for the first time since July, as building crude storages put pressure on the prompt month.
- Worsening sentiment for demand is also having an impact on prompt prices, contributing to the weakness for immediate delivery and thus a flip to a contango structure.
- While the demand outlook appears weak, output from the US remains strong and is at a record level of around 13m b/d.
- While no official EIA data on Cushing stocks was announced this week, there have been two successive builds in inventories.
- A contango structure makes it favourable to capture a higher price by storing crude to sell later, thus incentivizing building stocks.
- Spreads for time periods further out remain in backwardation structure, implying the weakness is focused on the prompt month.
- WTI DEC 23-JAN 24 down -0.04$/bbl at -0.02$/bbl
- WTI JAN 24-FEB 24 down -0.02$/bbl at 0.17$/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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