Last week the oil complex put in something of a dogged performance. Despite the setback of the US Oil Inventory figures, the oil fraternity endeavoured to hold on to the idea of impending summer demand and this was aided by worries concerning spreading hostilities between Israel and its immediate foes in both Gaza and Lebanon.
As most markets draw in breath at the end of both the second quarter and first half of the year oil remains true to its current form of expansionism on prices. There is little doubt that the current increasing backwardation in M1/M2 Brent futures at expiry is having most of the positive influence across the complex, for North Sea markers in nearby CFD's and dated versus front line, while remaining steady, have not advanced much at all this week.
Yesterday turned into something of a non-event for oil prices as commodities and the wider suite hunker down in the face of data and politics at the week's end. What added to the mix of reasons to be careful were the rather insipid data from the US EIA Inventory Report.
Copyright © 2025 TP ICAP