Oil Market Glut Grows Bigger as Saudi Arabia Says Worst Is Over
- Traders say Libya, Nigeria and Kazakhstan add to oversupply
- Brent crude time-spreads weaken to levels seen in February
Oil's 'Bad Inflation' Role in Getting to 2% Target
Photographer: Martin Divisek /BloombergThis article is for subscribers only.
Listen to Saudi Arabia and hear the oil market is rebalancing. Look at the screen, and Brent is indeed holding above $50 a barrel. But dig deeper into the world of physical oil, and bearish signals abound, at least in the European market that helps dictate global prices.
The price difference between Brent crude for delivery in two months and three months -- a yardstick telling traders how well supplied the market is -- widened to minus 69 cents on Thursday, the biggest discount since February. Back then, the headline price for the grade was barely above $35 a barrel.