Oil Slides as Futures Curve Signals Easing Demand

Brent crude oil is down 2.5% at $68.99 a barrel and WTI futures are down 2.6% at $66.49 a barrel as concerns over the impact of the Delta variant of the coronavirus on oil demand continue to intensify.

The premium Brent contracts for future months have compared with nearer months is becoming less pronounced, signaling an easing of supply tightness, ING’s Warren Patterson says. That comes as OPEC+ prepares to continue with plans to increase production, and as Chinese trade data show that crude oil imports over the last month have softened. Typhoon disruptions, as well as “high oil prices, limited import quotas especially for private refiners, and refinery maintenance have been weighing on crude oil demand from the country,” he adds.

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