Financial Markets: Backwardation Consolidates on Ida Impact

Copyright © 2021 Energy Intelligence Group
WEO ONLY -- Trading, finance, candlestick, prices, markets, oil

Traders’ views in the paper market have been torn between the possible development of new Covid-19 variants and the higher risk of inflation associated with an economic rebound. But since late August, bets on higher prices from banks and funds have risen — and so did the price for crude and products. Refiners starting their semi-annual turnarounds create weakness to the physical crude spot market -- even though term cargoes are already looking at November loadings, which arrive when most maintenance is done. Softer physicals can weaken the price of front-month crude futures, and narrow the prompt premiums over later supplies.

Hurricane Ida's impacts on refineries in the US is throwing product markets in the Americas for a loop and disrupting trade flows.
Tue, Sep 21, 2021
US crude’s march above $80 has left many wondering how short-cycle shale suppliers might respond. Energy Intelligence examines the factors in play.
Fri, Oct 15, 2021
December ICE Brent rose 82¢ to close at $84/bbl, while November WTI settled 87¢ higher at $81.31/bbl.
Thu, Oct 14, 2021