Market Analysis: Weakness in Middle Eastern crude oil intensifies concerns over a global supply glut
Market analysts say that further signs of weakness in the Middle Eastern crude oil market have intensified concerns that a global supply glut could drag down oil prices, while also allowing Asian traders to remain relatively unfazed by developments in Venezuela. On Monday, the Brent-Dubai futures swap spread (EFS) widened to its widest level since August of last year, indicating ample supply. Meanwhile, the forward curve for Dubai swaps reverted to a contango structure—a bearish pattern where near-month contracts trade at a discount to far-month contracts. Furthermore, the spread between spot cargoes and the Dubai benchmark is narrowing rapidly, reflecting weak demand. “Supply glut is hitting the Middle East market, and almost all indicators point to a weakening spot market,” said Warren Patterson, head of commodities strategy at ING in Singapore.
Source:富途快讯 · Source Link
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