Weak Physical Market Keeps Oil Prices Rangebound

摘要

Oil prices inched up on Tuesday, but stayed within their comfortable $40-$45 per barrel range as signs of pervasive weakness percolated through to the future curves. The front-month West Texas Intermediate (WTI) November contract was expiring at market close and liquidity was thin, shooting extra volatility into the curve, while Brent seesawed on mixed signals from a depressed North Sea market before eventually finding its legs in the second half of the session. In Northwest Europe, refiners are still struggling with dismal margins, avoiding the spot market outside of their bare-bones baseload needs.