Crude futures, as well as those for gasoil, remain in backwardation in the nearer months of their curves, which means traders are having to pay more to secure prompt supplies. That pattern points to tight conditions even as producers’ cartel OPEC+ has been relaxing output curbs at a rapid clip.
Oil is higher so far this month, following gains in May and June. Both Morgan Stanley and Goldman Sachs Group Inc. have made the case in recent days that while global crude stockpiles have been expanding, the substantial builds have occurred in regions that don’t hold much sway in price-setting.
“While inventories globally have built very significantly, stocks in the pricing centers — especially in the US — are still quite low,” Daan Struyven, head of oil research at Goldman Sachs, told Bloomberg Television. The market’s focus has shifted to downside risks to supply, he said.
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