-2.1 C
New York City
Tuesday, April 23, 2024
Home ENERGY Europe, Africa Oil Markets Tighten, Support Futures Prices

Europe, Africa Oil Markets Tighten, Support Futures Prices

Red Sea shipping delays and OPEC+ supply cuts are tightening physical oil markets in Europe and Africa as well as the Brent crude market structure, lending further support to oil futures prices, according to traders, LSEG data and analysts.

A sustained rise in crude prices would lift energy, transportation and manufacturing costs and threaten to unwind some of the recent falls in global inflation, just as major central banks are expected to begin cutting interest rates.

On Thursday, the benchmark Brent crude futures market structure hit its most bullish since October. The premium of the first-month contract to the six-month contract reached $4.34 a barrel. This structure, called backwardation, indicates a perception of tight prompt supply.

“It looks like there has been a pick-up in (tanker) diversions, which is making the crude balance tighter,” said FGE analyst James Davis. Crude demand is high because of strong refining margins, despite refinery maintenance, he added. (Reuters)

©Copyright MOTORING WORLD INTERNATIONAL. All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contact[email protected]

Most Popular

FG Sets Targets for Made-in-Nigeria Vehicle Production

While the National Auto Industry Development Plan(NAIDP) still awaits presidential ascent, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, has expressed Nigeria's...

Nigeria Customs Warns Against Fake Vehicle Auctions Video

The Nigeria Customs Service (NCS) has warned the general public to be wary of illegal platforms announcing a purported auction of vehicles. The Service issued...

All-new Electric Mercedes G-Class Set for World Premiere

TILDA FRANCES Not later than next Tuesday, the anticipated all-new Electric-powered, Mercedes-Benz G-Class will be unveiled to the world. We do not know when Weststar, Nigeria’s...

GAC Motor Partners Salvador Caetano in Automotive Evolution

GAC Motor, in collaboration with Salvador Caetano Group, is set to make a significant impact on the South African automotive market with the introduction...