:: Market News --- ID :: 19442
crude today // 07-01-2022
Widening backwardation

By Srinivas Chowdary Sunkara // petrobazaar // 7th January, 2022.

Brent oil futures prices for March delivery climbed $1.19 or 1.47 pct to settle at $81.99 a barrel on London based ICE futures Europe exchange. U.S crude oil Feb futures prices went up $1.61 or 2.07% to close at $79.46 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 1.8Yuan to 501Yuan/bbl while MCX crude oil front month futures prices rose Rs.76 or 1.31pct to settle at Rs.5896 a barrel yesterday.  Brent premium over WTI widened to $2.53 a barrel during the session.

The world crude oil price index curves continued to hover on upside over the optimism surrounded by escalation of unrest in Kazakhstan and supply outages in Libya. Both the world benchmarks traded at their highest since late Nov on strong technicals backed by Omicron over sold reversed back. Brent's 6 month market structure stood at about $4 a barrel in backwardation - where current price trade at a premium to futures prices - Its widest since late Nov and a sign of a bullish market. Analysts are in the opinion that KSA OSPs indicate  over supply in contrast to the paper showing that global supply and demand balance was meant to be in surplus from Dec. Monthly reports due in the next week are in focus. Today, Asian markets are opened in green, adding gains to previous session numbers. Rig numbers are due later today. 

Good day to all.

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