Crude Market Shows Enduring Strength Beyond Seasonal Peak
- WTI barrels surge to levels not seen in more than a year
- Middle East, Latin American crudes also trading strongly
Workers use a bucket to collect a sample of crude oil at a multiple well platform, operated by Rosneft PJSC, in the Samotlor oilfield near Nizhnevartovsk, Russia, on Monday, March 20, 2017. Russia's largest oil field, so far past its prime that it now pumps almost 20 times more water than crude, could be on the verge of gushing profits again for Rosneft PJSC.
Photographer: Andrey Rudakov/BloombergThe market for physical barrels of crude from places as far apart as Oman and Colombia is strengthening beyond the traditional seasonal peak in demand, a positive indicator for global benchmark futures prices that remain stuck near $50.
Physical differentials -- the price gap between individual grades of crude and widely traded markers like Brent or West Texas Intermediate -- have strengthened over the last two weeks, according to data compiled by Bloomberg. That’s happening even for barrels due to be shipped in late September and October, typically a period of weaker demand due to seasonal refinery maintenance.