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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
Over the last couple of months prompt time spreads have rallied due to the physical tight supply of oil. The front 1-2 spread in Brent is up from nearly flat at 0.16$/bbl in mid April to currently trade at 3.78$/bbl
- Price moves further down the forward curve have been much more muted with the Dec22-Dec23 spread up from 6.8$/bbl to 12.22$/bbl over the same time period. The spreads have even been drifting back down in recent weeks as the outright futures have declined.
- Concerns for oil demand due to a possible US recession are keeping longer term spreads down, but with limited spare global production capacity the curve remains backwardated.
- Brent SEP 22-OCT 22 up 0.34$/bbl at 3.78$/bbl
- Brent DEC 22-DEC 23 up 0.40$/bbl at 12.22$/bbl
- WTI AUG 22-SEP 22 up 0.22$/bbl at 2.88$/bbl
- WTI DEC 22-DEC 23 up 0.58$/bbl at 12.85$/bbl
- The curve below compares the current Brent forward curve to the curve from the end of April two months ago:
Source: BloombergWhy 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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