Global oil market flashes warnings as demand concerns spike - BusinessMirror

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The global oil market keeps sending up flares on the outlook for weaker demand. Know more:

“The fact that Dec. 5 is not injecting any premium suggests the market is sanguine there will be no major supply disruption, at least nothing on a sustained basis,” said Vandana Hari, founder of Vanda Insights in Singapore. on Friday amid further signs from China that anti-virus restrictions in key cities are multiplying as officials seek to quell Covid-19 outbreaks.

With physical trading this month mostly concluded for January-loading cargoes, spot premiums for key Persian Gulf grades have declined sharply. While China’s Rongsheng Petrochemical Co. did purchase about 7 million barrels mid-month, that wasn’t enough to lift the sentiment, traders of those grades said.

Meanwhile, another physical market indicator — inter-month Dubai swaps — was in a contango early Friday, signaling bearishness for December through April, before flipping back to a slightly backwardated structure, PVM Oil Associates data showed. Before this week, the last time it was in contango was in April 2021.

Brent traded at near $87 a barrel on Friday after hitting $82.31 on Monday, the lowest intraday price since January.

 

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