• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 3 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 2 hours Itt looks like natural gas may be at its lowest price ever.
  • 3 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 6 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 2 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 59 mins Saudi A to Splash $100 Bln on India
  • 4 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 19 hours students walk out of school in protest of climate change
  • 1 day Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 1 day Some Good News on Climate Change Maybe
  • 17 hours Mineral rights owners,
Energy Digital

Energy Digital

Energy Digital is a leading digital media source of news and content for C-level executives focused on business and all aspects of managing the environment.…

More Info

Bulls Run Rampant In The Oil Market

Bull

Friday January 12, 2018

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Timespreads bolsters oil prices

(Click to enlarge)

- Some geopolitical flashpoints, inventory drawdowns and rising demand are pushing oil prices to their highest point in years. Yet the futures market also offers some validation for higher prices.
- Brent one-year timespreads continue to climb, rising deeper into backwardation territory. Backwardation – when front-month contracts trade at a premium to futures dated further out – signals bullishness in the market.
- Oil traders are willing to pay nearly a $5 premium for oil in February compared to oil 12 months from now. The backwardation is at its most extreme point since 2014.
- From a trading standpoint, buying contracts is profitable because each month the trader rolls into a cheaper contract.
- “Being long oil gives a positive annual return, even if oil stays flat,” Giovanni Staunovo, a commodity analyst at UBS Group AG, told Bloomberg. “The last time you could say that was in 2014.”
- The result is investors piling into long bets on crude oil, which is helping to push up prices.

2. Bullish sentiment seen across commodities

(Click…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News