DTO - For The First Time In A Long Time Global Oil Markets Are Finally Moving On Fundamentals Again
For the first time in a long time, our indicators are starting to work... again. The same tools we developed over the summer to help us gauge the health of the global oil markets are returning helping us gauge the direction of where oil prices are headed.
This week saw Brent timespreads for the 1-12 month return back to backwardation.
This is a rather significant development given that we were at -$2/bbl just three weeks ago. To explain the sudden reversal of the timespreads, we think part of the strength is related to strong imports