RECENT ENERGY PRICE DEVELOPMENTS

摘要

Colder weather in early December supported a product driven rebound in the prices of crude futures. NYMEX WTI averaged 59.45 dollars/bbl in December, rising 1.9 percent while IPE Brent averaged 57.63 dollars/bbl, 2.4 percent higher than November. Time spreads in the front contracts narrowed over December, more noticeably for IPE Brent while the contango structure for both contracts remained in place through the next 12 months. Gains in Brent outpaced those for WTI on increased European refinery buying for crudes priced off the North Sea marker. Brent's discount relative to WTI fell to 2.91 dollars/bbl on 30 December from 4.43 dollars/bbl at the end of November Both NYMEX WTI and IPE Brent pushed above 64 dollars/bbl in early January supported by strong gasoline prices, Nigerian outages and uncertainty about Iran's nuclear program. Physical crude prices saw WTI firm relative to Dated Brent in the second half of January, the widening premium came alongside a dip in freight rates on transatlantic routes. Medium sour Dubai crude weakened against Dated Brent and the differential between Dubai swaps and Brent quoted in Asia widened to 5.13 dollars/bbl on average in January. Crude futures held in contango (prompt month below future months) as forward delivery months continued to strengthen along the curve.