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The spread between the front two Brent contracts widened to $2.45 a barrel, the highest since October 2022, signaling prompt physical tightness. Analysts attribute the backwardation to voluntary output cuts from Saudi Arabia and Russia under OPEC+.
A steep backwardation signals tight prompt supply, which tends to lift near-term energy costs and support commodity prices linked to crude. Feed buyers face higher energy and freight expenses while the structure persists.
brecorder.comReutersSep 29, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
