Crude flat prices demonstrated upside momentum this week. Brent flat prices below $72 on Friday night after a volatile movment dring the week. The differnetials markets remain stable with stability in spreads movements. The forward structure continued to display mild backwardation in prompt Brent and WTI contracts, Indicating near term supply tightness and supportive spot demand. Inventory reports showed modest draws. Geo-politics remain in headlines with U.S – Iran jitters sprinkles fears across. Spculators data through the week ending 17th Feb, Showed that Money managers reduced netlength in crude F&O while Longs and short positions were built up. Market sentiment remain cautiously constructive, Near term price trends upwards as long as backwardation persists. A shift towards contango or weaker demand indicators could presserise oil prices, while geo-political factor may spur upside volatility.
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