Will Cunliffe
July was a weird month; initially we clung to a fragile MoU. It ended in hostile exchanges except this time the war zone has spread...
July was an odd month. We entered it clinging to the remnants of the MoU like a disintegrating lifeboat in briefly becalmed stormy waters, while the US and Iran eyed each other warily. The crude market began the month extremely weak, with flat price down in the low-$70s, at its weakest since the war started. The curve was also extremely flimsy, in contango at the front – the Sep/Oct Brent spread dropped as low as -50c in the first couple of days – but rallied in the latter half. The prompt spread even hit $7 on 24 July!
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