• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 4 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Is $100 Oil Within Reach?

Is $100 Oil Within Reach?

We have a situation where…

Rising Middle East Risk Sparks Fear of $100 Oil

Rising Middle East Risk Sparks Fear of $100 Oil

In case of further escalation,…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

This Key Indicator Is Pointing To Higher Oil Prices

  • Wild spikes in the prompt timespread for oil product futures in the United States have suggested that crude oil supply is set to tighten further
  • The 1-month timespread has logged intraday differences of as much as $0.54
  • "There is still plenty of momentum behind the oil rally and the fundamentals remain extremely favourable," Craig Erlam, senior market analyst at OANDA, told Reuters this week.
Cushing

Wild spikes in the prompt timespread for oil product futures in the United States have suggested that crude oil supply is set to tighten further, adding upward pressure to prices, Bloomberg has reported.

According to the report, the timespread, which is the price difference between oil derivative futures for immediate delivery and those for delivery during the next month, has logged intraday differences of as much as $0.54.

It normally moves by just a few cents a day.

According to some observers, this means that the government may soon start releasing oil from its strategic reserve—something there have been reports about as Washington struggles to keep prices at the pump under control.

"Cushing is the only place where there's surplus crude and that's going to start being pulled quickly," according to hedge fund manager Gary Ross, who spoke to Bloomberg. "That sets the stage for an explosive move on WTI structure. It has doubled in the last two days and it could double again quite quickly." 

Some are already talking about three-digit prices for oil before this year's end.

"There is still plenty of momentum behind the oil rally and the fundamentals remain extremely favourable," Craig Erlam, senior market analyst at OANDA, told Reuters this week. "Will it be a surprise to see oil back in the triple digits later this year? Probably not."

In the United States, "The market is worried about Cushing balances as October is looking like a draw," ICAP energy specialist Scott Shelton told Bloomberg. "We could see stocks under 30 million barrels by the end of the year."

U.S. prices at the pump have jumped by $1 per gallon since last December and by $0.40 over the past six months. West Texas Intermediate, meanwhile, has hit the highest in seven years, at over $80 per barrel.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News