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US Spot Crude Backwardation Steepest Since November

OIL

Spot crude price backwardation in Cushing, Oklahoma, reached its steepest level since November, driven by growing prompt premiums, according to Argus.

  • The prompt Argus Nymex WTI premium to the CMA Nymex assessment rose yesterday to a 95¢/bl weighted average, its highest since November 2022.
  • EIA raised its WTI price forecast for the full year 2023 by 4.5% to $77.79/bl in its August Short Term Energy Outlook.
  • US officials and some shale producers now expect tighter supplies for the remainder of 2023. Extended Saudi and Russian cuts and increasing global demand are expected to reduce inventories further and boost prices, according to the EIA.

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