Analysis: Rising US crude oil exports complicate rebalancing efforts

17 Jun 2017   exports, USA

One reason for the bearish narrative gripping the oil market of late has been that draws in US crude stocks have essentially come at the expense of the rest of the world. US crude exports have surged this year — averaging more than 1 million b/d in April, the second most on record — driven by the significant discount of US crude prices relative to global benchmarks. The weakness of ICE Brent’s term structure compared with NYMEX crude can be seen as a symptom of the glut that has been exported out of the US to the rest of the world that, in turn, has weighed on the oil complex. The recent plunge in oil prices that began May 25 saw crude futures drop roughly $7/b through last week, while the contango widened across time maturities for ICE Brent and NYMEX crude. Moreover, the contango for ICE Brent has […]

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