A closely watched gauge of tightness in the crude market is weakening on concern about Indian consumption due to the coronavirus, as well as expectations for more cargoes in Europe.
Brent crude for July, the most-immediate futures contract, is fetching smaller and smaller premiums relative to August barrels, according to ICE Futures Europe data. On Tuesday the price gap, or backwardation, between the two contracts fell to 19 cents a barrel, its smallest since late March. That indicates a less-bullish reading of the market among traders.
