Crude Prices Now Holding In the Middle Of Saudis' Preferred Range
Sober Look | Oct 21, 2014 02:38AM ET
Crude prices came under pressure again today. According to Reuters (particularly Russia, Iran and Venezuela) – these countries all want to see production cuts.
A significant difference remains in the demand profile between the international crude markets and those in the US. While both of the futures curves shifted sharply lower, the WTI curve, unlike Brent, remains in backwardation. It means that US crude oil market participants have an incentive to take oil out of storage rather than storing it. This indicates a more robust US spot crude demand than exists globally.
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