The price difference between Brent crude's spot price and nearby futures contract finished last week at $32, the strongest basis read since at least 2008.
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Additionally, forward curves for both Brent and WTI show strengthening backwardations meaning commercial interests continue to push the markets to source supplies to meet demand.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. It is impossible to guess how high crude oil could go, but when supplies start to move again, the selloff will be volatile.
Late last week I saw a story on CNBC.com with the teaser, “Brent oil spot price for actual cargo soars to $141, highest level since 2008 financial crisis”[i]. Three things jumped out at me about this. Let’s talk about them.
