Real-time oil cravings catch up with futures rally

LONDON / SINGAPORE / MOSCOW (Reuters) – Corporate crude oil sales are gaining momentum at higher prices following futures market rally, traders and analysts said, as expectations rise in near-term demand.

Global benchmark Brent futures are trading above $ 65 per barrel, a quadruple in value from a pandemic downturn in April.

Compared to Brent futures, near-term corporate sales of trades are regulated by producers, refiners and trading houses.

Their increase better reflects the real-time desire for oil, which is growing as OPEC + oil producers look set to only gradually reduce supply loops in the coming months and demand for global vaccine emissions is expected to recover in the second half of the year.

“Spot prices are going up with the increase in the future, especially in the North Sea,” said a European refinery source on condition of anonymity.

Interest in North Sea crude was spurred on Monday, traders said, with more than 20 applications in the Platts window and key levels reaching high levels last seen in August. Brent’s corporate crude rose to near Brent’s deadline more than 90 cents per barrel on Wednesday.

(Graphic: Brent raw 🙂

Dated Brent is based on corporate oil trading from the North Sea streams of Brent, Forties, Oseberg, Ekofisk and Troll.

Asian crude trade resumed after a lull during the Lunar New Year holidays, pushing up the high price for Russian Sokol crude to a 7-month high above $ 2 a barrel to Dubai quotas.

(Graphic: Sokol raw :))

Spot prices for Russian crude ESPO Blend, a level with a focus on China also rebounded from last month’s 4-month level to see prices near $ 2 a barrel.

One of the clearest signs of the oil market is a recession, a structure in which oil is more valuable now than it was in the months that followed, prompting the sale of prompter .

Brent 12-month backup hit 13-month high futures above $ 6 this week.

(Graphic: Brent backwardation 🙂

UBS oil analyst Giovanni Staunovo said UBS was long on Brent.

“Brent revenue contracts that expire in mid-2022 are currently trading at a 10% discount to the spot price. We expect them to rise to $ 70 per barrel by the end. ”