Brent futures have rallied over 40% in 2021, boosted by output curbs led by the Organization of the Petroleum Exporting Countries and it allies, and on hopes of recovering demand. The physical crude rally is being reflected in strengthening time spreads in Brent futures. “I think the crude physical market is in solid shape,” said Scott Shelton, a U.S.-based energy specialist at United ICAP. Demand for light Azeri BTC crude oil, which is trading near one-year highs, has risen recently amid wider margins for oil products in the Mediterranean. A lack of U.S. crude exports due to poor profitability for shipping oil overseas has helped support differentials in other regions.

Source: The North Africa Journal June 22, 2021 11:26 UTC