Crude: Sweet Spot Demand Reaches Fever Pitch

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The North Sea sweet, low-sulfur spot is on fire. Dated Brent, which prices physical cargoes of North Sea crude with a loading date, showed a rare premium of more than $5 per barrel to the front-month Brent futures contract mid-February. The first-week Brent CFD swap — the weekly difference between dated and the forward Brent price — broke through $4/bbl, an even rarer event. Dated Brent is the benchmark for some 60% of all spot traded crude and the pricing anomaly is felt around the globe. Several forces have come together to push up the prompt sweet crude price.

Oil Spot Markets, Crude Oil
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