Will Cunliffe
Research Analyst, The Officials
Backwardations back alright!
Prices are up! Europe is slowly starting to fill its gas inventories while diesel is in hot demand and sources tell The Officials QatarEnerg
Prices are up! Europe is slowly starting to fill its gas inventories while diesel is in hot demand and sources tell The Officials QatarEnergy has announced Force Majeure on mid-August deliveries.
Prices are up! Prompt Brent is above $74 for the first time since 26 June and the prompt spread is even flirting with backwardation again. Dated Brent is also showing a few signs of recovery, as CFDs rallied down the curve. They remain deeply negative throughout but are markedly stronger than yesterday. The physical North Sea window itself was a snooze fest, as BP remains the only player interested in doing anything at all. They offered another 20-22 Jul Brent and 25-29 Jul CIF Brent cargo, but both were above the curve and never lowered. As a result, the curves remained unchanged and the physical differential simply rolled up marginally to -$1.29. BP showed most interest in lowering its Johan Sverdrup offer for 3-5 Aug down to 40c over Dated from 85c over Dated yesterday.
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