Brent is now in backwardation
|Oil price
The most noticeable change at the moment in the oil setup is that Brent is now trading at a $4.21 premium to WTI which is a recent high, with last week’s inventory stats adding to recent draws the US crude may become more attractive to US refiners. Indeed with Baker Hughes announcing a 5 rig fall to 763 rigs last week there was little surprise that crude bounced on Friday. Even then it was Brent that took the plaudits and on the week increased by 62 cents whilst WTI fell by 31 cents. Brent is now in backwardation and that usually makers traders if not delirious, then moderately happy and being able to rollover their bets at little cost.
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