2023-12-13T04:43:29+00:00
A-
A
A+
/ Oil prices stabilized in Asia after losing nearly 4% yesterday, Tuesday, as rising Russian flows and American production led to increased concerns about excess supply.
Brent crude, the global standard, was trading near $73 a barrel, while the price of its American counterpart, West Texas Intermediate, was around $68.
Russia’s weekly average of seaborne crude oil exports jumped to the highest level since early July, while the United States raised its estimate for domestic crude production for this year.
Reflecting the weakness, time spreads indicate that supply is exceeding demand. Brent and West Texas Intermediate crude futures are in a bearish “contango” state, with spot contracts trading at discounts to futures contracts, as the latest discounts on 12-month contracts were 8 cents per barrel in a “contango” state, and this is the first time it has dominated.