Headache for Opec as oil market structure signals return of glut | Malay Mail

  • 📰 malaymail
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 86%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

SINGAPORE, July 30 — Rising Opec and US oil supply, coupled with stalled economic and crude demand recovery, have pushed the futures market structure back to indicating a surplus, last observed during oil’s collapse in April and May amid the coronavirus pandemic. The development is a headache...

The logo of the Organisation of the Petroleum Exporting Countries sits outside its headquarters ahead of the Opec and Non-Opec meeting, Austria, December 6, 2019. — Reuters pic

The surplus market structure, when prompt prices are weaker than future prices, is also a boon for traders, as they can store crude in the hope to resell it later at a profit. Royal Dutch/Shell, Total, Eni and Norway’s Equinor have all reported bumper trading profits over the past week. “Opec’s experiment to increase production from August could backfire as we are still nowhere near out of the woods yet in terms of oil demand,” said Bjornar Tonhaugen, Rystad Energy’s Head of Oil Market Research.

Many exchange traded funds were also spreading their long positions more equally across the curve after some asset managers were badly burnt by April’s negative expiry of US front-month WTI crude futures, Lee said. Demand from top buyer China softened due to weak margins, prolonged port congestion, severe flood and limited crude import quotas, several China-focused traders have said.“US producers are bringing back wells they had previously shut... Given the disappointing demand, it raises the possibility that the market returns to building inventories,” said Warren Patterson from ING.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 1. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Shell dives to US$18.1b Q2 loss on virus-hit oil market | Malay MailLONDON, July 30 — Anglo-Dutch energy major Royal Dutch Shell posted today a colossal net loss of US$18.1 billion (RM76.9 billion) for the second quarter, blaming massive asset writedowns on the coronavirus-hit oil market. The performance, contrasting sharply with profit after tax of US$3.0...
La source: malaymail - 🏆 1. / 86 Lire la suite »

Covid-19 tanks US economy in second quarter, labour market struggling | Malay MailWASHINGTON, July 30 — The US economy contracted at its steepest pace since the Great Depression in the second quarter as the Covid-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus. The bulk of the historic...
La source: malaymail - 🏆 1. / 86 Lire la suite »