-Demand signals are louder than COVID concerns. -Russia looks set to end OPEC+ constraint. The futures structure for Brent crude oil moved into slight backwardation in late Thursday trading after Iraq and Kazakhstan pledged to uphold their curtailment obligations to OPEC. Backwardation, where late-month contracts trade at a discount to the market, signals the oversupply … More The Daily Dose; Backwardation Baby.
-Oil prices bounce in US jobs report. -Cleveland Fed’s Mester says the devil is in the details. Crude oil prices were on the rise in early Thursday trading after US government data showed an increase in fuel product demand. A decline in inventory levels in Cushing, Okla., the delivery point for US crude, was also … More The Daily Dose; The Market Disconnect Continues.
Risk level: RED RED: Severe (+/- 4%) ORANGE: High (+/- 3%) YELLOW: Elevated (+/- 2%) BLUE: Guarded (+/- 1%) THE BOOSTER SHOT -There’s no going back to normal. -BP expects $55 crude at most through 2050. Reality may have finally descended on the crude oil market. The price for Brent crude oil has been on … More When Volatility is Volatile
The GERM Report 