Crude Oil Stocks
This week we saw roughly a 3.25% rally across the board in crude oil prices. The backwardation of the Dec7/Dec8 spread was relatively unchanged to wider for the most part, which continues to tell us the market is no longer willing to pay you to store oil.
Persistent ‘slight’ backwardation will gently keep max barrels going into storage without meaning the overall market is bullish. Keep an eye on this spread to see if that makes a larger move which would have a more significant bullish/bearish impact.
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