Financials: Time Spreads Signal Tighter Brent Market Ahead

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
Sodel Vlayslav/Shutterstock

The global supply and demand balance is murky and the future uncertain, but time spreads in Brent futures contracts say this crude market is getting tighter. The crucial six-months Brent spread between the front-month futures contract and delivery six months later shows that the prompt premium has again widened from a December low of 45¢ per barrel to $1.14/bbl in January and $2.15/bbl in the first two weeks of February. The front-month Brent futures contract is trading April and the time spread covers the period through September, by which time the world will have more clarity on how Russian exports have responded to European Union sanctions and how oil consumption in China looks.

Oil Futures and Derivatives, Oil Prices, Oil Trade, Crude Oil, Diesel/Gasoil
Wanda Ad #2 (article footer)
Net exports of crude and refined products from the US plunged in January, but still averaged almost 1 million barrels per day.
Fri, Mar 31, 2023
The international benchmark will begin including WTI into its price formula starting next week.
Fri, Mar 31, 2023