Key Oil Market Indicator Shows There's More to Rally Than Freeze
- Supply losses in North Sea, Nigeria, Iraq boost Brent spread
- Goldman see spreads weakening again as disruptions ease
Saudi Arabia, Iran Take Center Stage at Doha Oil Talks
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OPEC and Russia might like to take all the credit for oil’s recovery with their plan to freeze production. Futures prices show that’s not the whole story.
While much of the 30 percent rally in Brent crude futures over the past two months has stemmed from the producers’ dialogue, a diminishing contango -- where oil for short-term delivery is cheaper than later shipments -- shows that markets are also feeling the loss of supplies from a number of areas, from the North Sea to Nigeria and Iraq.