Brent Crude Oil Volatility
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Welcome to The Snapshot – our series which examines the forces shaping and driving international commodities markets today.
The Dated Brent market moved sideways within the month of August with prices oscillating within a buying and selling channel between fifty and fifty-three dollar per barrel.
The Dated Brent CFD forward curve has been in backwardation for the entire month indicating a relatively wholesome demand for BFOE and North Sea grades.
In particular, good but not aggressive demand petroleum refining & marketing korea from China and the Far East in addition to domestic demand helped keep prices above the fifty dollar per barrel threshold despite fears that the widening WTI/Brent spread would push American barrels into the North Sea.
Internationally, Libya’s Nationwide Oil Corporation, around the end of August, was pressured to declare pressure majeure because the Sharara oil discipline was again attacked by militants while information coming from the Middle East shows that final month’s OPEC output was 32.Sixty five million b/d, which is 6 hundred and 30 thousand barrel per day petroleum refining & marketing korea above the stated ceiling.
The cartel’s compliance to production cuts was ninety three% in July and 114% yr-to-date. On the opposite aspect of the Atlantic, the US crude oil stocks dropped by 5% between the top of July and the top of August whereas American crude manufacturing reached nine-level-fifty-two million barrel per day on August 24.
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