US Crude Benchmark WTI Flips into Backwardation – Is It Ready for a Bull Market?

Global Cross-Asset Energy Analyst, VAC Investments

Aaditya Chintalapati, CFA

Global Cross-Asset Energy Analyst

Thematic (Sector/Industry)

Colombia Energy / Thematic (Sector/Industry)

<h2>Oil Price</h2><p>WTI and Brent prices had another volatile week before ending c.USD 1/bbl lower at USD 57.26/bbl and USD 63.31/bbl, respectively. By mid-week, both benchmarks had dropped c.USD 3/bbl, largely due to fears of continued robust US shale production and the effective cap on long-term oil price expectations. However, most of this loss was recouped by the weekend due to heightened geopolitical risks in the Middle East; strong Chinese crude import data; and threats of a nationwide strike amongst…</p>

Oil PriceWTI and Brent prices had another volatile week before ending c.USD 1/bbl lower at USD 57.26/bbl and USD 63.31/bbl, respectively. By mid-week, both benchmarks had dropped c.USD 3/bbl, largely due to fears of continued robust US shale production and the effective cap on long-term oil price expectations. However, most of this loss was recouped by the weekend due to heightened geopolitical risks in the Middle East; strong Chinese crude import data; and threats of a nationwide strike amongst…

Global E&Ps: Energy Weekly Vol. 5