Saturated market flirts with contango

摘要

Light sweet crude supply is rising while low-sulphurcrude refineries are closing, prompting the North Seaforward market to flirt with contango.The Atlantic basin light sweet crude market has becomesaturated. A rise in Libyan production to 750,000 b/d inDecember from zero in August and growing US shaleoutput has added to the supply of light sweet crude in the Atlantic basin, just as 470,000 b/d oflight sweet refining capacity has closedin Europe and the US Atlantic coast.